Here is how the Owner Financing program works:
First, if you feel you can afford the monthly payments without any stress or hardship, you are approved! There is no credit check, employment verification, etc.
All you need to do to start the process is to choose the property on my website then pay the down payment and the document fee online.
The down payment and document fee is non-refundable. So please be sure the property and terms are right for you.
We will use something called a Contract For Deed, also known as a Land Contract. When the property is paid in full, a deed will be drawn up in your name and the property will be officially transferred into your name.
If you would like to review this document, please contact me using the form on the Contact Page and I will be happy to send you a sample copy.
In the meantime, here are some highlights, in plain English, you should know:
There is no penalty for early payoff. You would save money and I would be happy!
Since so many buyers have misbehaved in the past, breaking local laws and creating liability issues, the following rules are now an important part of the contract:
(a) Buyer will not live on the property or allow any other party to live on the property at any time during this contract.
(b) Buyer will not make any alterations to the property without sellers written consent. This includes, but is not limited to: clearing the property, adding structures or fences of any kind, or leaving items on the property.
(c) Buyer shall comply with all building, zoning and health codes and other applicable laws for use of said property.
(d) Any costs incurred to correct the above, including, but not limited to, trash removal, lot cleanup, fines and permit costs, whether due to the actions of Buyer or others, shall be the sole responsibility of Buyer.
(e) Buyer shall not record this contract in the public records of any public office.
(f) In the event of a violation of any of the conditions above, Buyer will be immediately in default of this contract.
- Once a year, we pay the property taxes. Then we invoice you for them.
- If your payment is late, a late fee of $35 or 15% of the payment, whichever is greater, is charged.
- We always try to work with people and be as flexible as possible, but at some point, If you default on your payment, or any other term of the contract, we will give you a ten day notice to make things right. After that ten days if you still have not taken care of it, you will lose the property. This will not affect your credit in any way, but it still is something neither one of us wants.
- Like any typical financing, there is interest. In order to be able to afford to extend owner financing to everyone, I need to charge interest. It is 16%. Pretty high, but better than the 24% on my MasterCard! And, again, if you make extra payments, pay off early, etc, you can save money and avoid interest.
- You are buying the property as-is. You are responsible for making sure the property is right for you and you can do what you want to do with it. There are no warranties of any kind, so please do your own research.
- That’s a lot of it. If you’d like to review the document, please contact me using the form on the Contact Page and I will be happy to send you a sample copy.