Top 10 mistakes made when selling your home with owner financing

In my previous blog, I wrote about how to sell your home with owner financing,  its associated risks, and how to protect you as a seller from buyer default. Now, housing market is down and using the tools of owner financing may help you to sell you home fast. However, you should always be aware that there are risks associated with owner financing and know how to control the risks. The biggest risk is the buyer default. You should always take precautions about this and do not break the golden rules I described in my previous blog. Or your punishment will be very severe.
 
Today, I am going to tell you the top 10 mistakes made when selling your home with owner financing in the style of David Letterman’s top 10 list. These are the mistakes you should never make after you read this blog.
 
Number 10. Not selling your home for more than appraised value
Number 9. Not charging a higher interest rate than it should be.
Number 8. Agreeing to pay a large portion of closing cost unnecessarily.
Number 7. Allowing the buyer to dictate the rules control the negotiation.
Number 6. Not verifying buyer’s capability to make monthly mortgage payment.
Number 5. Not using real estate attorney or professional to structure the contracts.
Number 4. Not putting proper protection clauses in the mortgage instruments or contracts.
Number 3. Allowing buyer to take title with small down payment.
Number 2. Not putting the deed in escrow or deed in trust.
Number 1. Allowing 100% owner financing without collateral.
 
Related links to selling your home with owner financing:
 
http://besthomesellingtips.com/2007/07/28/how-to-do-owner-financing-and-the-eleven-rules-you-must-not-break-to-protect-you-from-buyer-default/
 
http://besthomesellingtips.com/2007/07/16/how-to-sucessfully-sell-your-home-by-owner-financing-part-1/#more-19

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