Options for a Seller Financing Addendum

If you want to secure the purchase of your house by offering a seller financing addendum, then you may be unsure what options you have in order to secure the loan. Offering to finance a mortgage for your buyer is a risky business, as you may find that you get only a small amount of interest, without any real benefits. In order to secure the seller financing addendum, you should consider your options.

Securing a Lien

The most common way to secure the mortgage is to secure a lien against the house. This is a form of collateral that secures the house in case the buyer defaults or cannot pay for some reason. Making sure that you have a lien is the best way of ensuring that you will get your money back, no matter what happens.

Promissory Note and Deed of Trust

You should also make sure that you have a signed document such as a promissory note or a deed of trust. This is the leverage that keeps the buyer paying your loan, since you will be able to take back the home at any point with these documents. These notes are also where you set out your rates of interest and the amount of monthly repayments, so they are an important aspect of the seller financing addendum.

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