Seller Finance is Just Another Name for Wrap Finance

Have you been desperately trying to find a way to buy a home to your family are you keep hitting brick walls? It’s a very emotional and frustrating time. We should know because we have been there before. We can remember a time when we had no savings and we were stuck leasing and it was lousy.  We kept seeing advertisements with different building companies saying $1000 can get you started with your very own house and land package. The only problem was there was always a catch and even though our credit was fine there was always one small obstacle that kept stopping us from getting a foot in the door to homeownership.

As we write this article the words of my father ring clear to me when we were having a conversation about money. It was as clear as yesterday. He said “Son, if only I knew at your age what I know now I would be a millionaire”. At the time it didn’t make a great deal of sense to me but it sure does now. If we had learnt about Seller Finance and how it works when we were young in our teenage years we would have had a clear picture on how to secure property without needing a bank. Thankfully, we have come to know a great deal about the subject matter over the last 10 years and we regularly share this information with our children. Having this knowledge at such a young age will mean our children will be able to buy their own home using Seller Finance as well.

So what makes Seller Finance Homes so appealing?  If we could sum it in three words it would be this. No Bank Qualifying! It’s pretty simple really. You see, there are literally thousands of motivated sellers all over the world who for one reason or another cannot sell their house and they are basically left with no options. Who better to tell these motivated sellers about the Seller Finance advantage then you? We have personally spoken to hundreds of motivated sellers who never knew anything about Seller Finance and once they knew what it was and how it could help them it was like a dream come true for them. Once they knew and understood all of the advantages and how it can help them, for many, it meant the difference between financial ruin and financial security. Mortgage foreclosure makes up for a large percentage of families around the world who are forced into bankruptcy.

Avoiding mortgage foreclosure is not as tricky as it may sound and we have helped many families to do this. With the introduction of lenders mortgage insurance it has really increased the number of trigger-happy banks and mortgage lenders who seem happy to watch families lose their homes and face financial ruin.  Banks and mortgage companies continue to fail their duty of care to their customers.  Very rarely do they offer the information that their consumers are entitled to know about under their loan contract. Quite often the Seller is experiencing negative cash flow but a simple Seller Finance deal can turn the situation around into positive cash flow.

Here’s how it works.  A seller has a home that they need to sell.  That home has a mortgage.  For this example we will say the mortgage is $300,000 and a home is worth $350,000.  The homeowner can no longer afford the payments required on their $300,000 mortgage.  For one reason or another the home has not sold. There are so many buyers out there who don’t qualify for bank finance and would happily take over the payments of that $300,000 mortgage, in fact they would more than happily start making payments to that same owner based on a mortgage of $350,000 or more.  Once a seller and buyer agree on the terms it’s simply a matter of the buyer moving in and starting to make payments to the Seller.  As you can see in this example the Seller can go from a potential disastrous situation of a pending mortgage foreclosure to a cash-flow neutral or a cash-flow positive situation.

The new buyer is really happy because I now have a home they can call their own. The Seller goes from being in a possible financially ruining situation to having no problem at all. When both parties achieve success in both get what they want they have both won. Seller Finance offers so many benefits to both the buyer and seller if the deal is structured correctly.  Just watch out for investors who are selling homes with Seller Finance because they will normally be charging a really high rate of interest and on top of that they are probably asking too much money for the home. You can learn quite a bit about Seller Finance over at
http://www.DIYRentToBuyHouses.com.au where they have put together a do-it-yourself manual on topics such as Seller Finance, owner Finance, rent to buy, rent to own and vendor finance.  Good luck with finding your next home and breaking free from the rental cycle.  Don’t be in a hurry, take your time and follow the rules and by doing so you may be closer to home ownership than you think.

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