You’ve just discover another advantage of providing Seller Financing - Posted by Michael Morrongiello
Posted by Michael Morrongiello on March 13, 2000 at 11:28:23:
Your right, many lenders do not want to lend money on a purchase money transaction where the proposed buyer is not purchasing the subject property directly from the seller who has “legal title” ownership.
Creating options, sandwich leases, and even assignable contracts with sellers in an attempt to “wedge” yourself into a deal does not necessary equate to a pay day for you if your “retail” buyer cannot fufill the purchase of the property from you due to a problem in their gettting financing.
For the most part YOU can agree to sell the “retail” buyer the property and provide them financing yourself with a private SELLER CARRY BACK purchase money mortgage or trust deed.
You then arrange to SELL that mortgage or trust deed for cash and then that cash is used to pay off the original seller. This allows you to avoid these ownership and title problems.