With Seller Financing, you lock in a long term income stream without the need to be a property manager or find a new tenants every year. Also, the income from Seller Financing will outweigh the rent from renting to a tenant.
Yes, seller financing is legal. However, there are limitations and guidelines that must be followed. Skelly Agency will guide you through those regulations so your Seller Financing transaction is legal.
The Mortgage Deed will outline the consequences of a Buyer not paying the Promissory Note. In summary, the Seller has options. The Seller can take back the property through Foreclosure and not return the money received to date. Or the Seller can work with the Buyer through a Loan Modification. Skelly Agency will guide you through this process when needed.
In Seller Financing, the catch is that the Seller does not receive the lump sum of cash at closing. Instead, the Seller receives monthly payments over the next 180 months or 15 years. Spreading the income over time, eliminates your Capital Gains tax owed to the IRS.