What Is the Seller Financing Addendum?

If you want to sell a house quickly or buy a house at a reduced price, then you might consider a seller financing addendum. This is a particular tool that the seller uses to make a sale on her house during difficult financial times. In this type of agreement, the seller keeps the title to the house (usually as a deed of trust) and helps to finance the first mortgage on the property.

Advantages to the Seller Financing Addendum

This method of house selling allows the seller to offer her home to buyers outside of the traditional range. As the seller is willing to offer a mortgage, or part of the mortgage, the sale is likely to be completed more quickly. A seller financing addendum is also a very flexible method of agreeing to a property purchase, as the seller and buyer need only to negotiate repayment terms.


The main disadvantage to the seller financing addendum is that the seller may receive only a very small sum on the sale of the house. The buyer may give only the down payment for the first month, which can be difficult for most sellers, as they need the equity to finance their own purchases of different property.

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