Have You Considered Owner Financing on Your Massachusetts Home?

sinkingboat-pano_16910As we are all too aware, obtaining a mortgage today is much harder than it was just a few years ago. Much of that is due to the obvious fall out from the real estate recession, which started in 2010. Many areas were faced with a true crisis of confidence in the marketplace, as banks rushed to give out money, often to people who probably should not have been granted mortgages to begin with. Unfortunately, the knee-jerk reaction to that was to tighten lending guidelines across the board, even to well qualified Buyers. The impact that has had on sellers here in the Shrewsbury, Northborough, Westborough area cannot be understated.

One old concept, which is seeing a bit of a revival these days, is Owner Financing. This concept can give home sellers an edge over competition as it fully eliminates a large obstacle many buyers face today, and in turn will help augment your number of buyers. Another benefit to consider is the steady income you will receive from the mortgage payments. Right now with all of the market volatility that we are experiencing, and deposit interest rates near 0%, this could be your one steady interest earner – in some cases up to 7% or more!

Obviously, this could be a great monthly return, if you don’t need the proceeds from the sale of your home immediately. You might also consider partial seller financing. Most buyers will have a cap on their loan allowance, and as the seller you can consider financing the rest at a higher interest rate than normal.

Keep in mind that as the seller you would not have to hold on to this mortgage forever, as it can be sold on a secondary market. With that all said, however, you also need to seriously consider the issues of a potential Buyer default, which could leave you facing the prospect of having to foreclose on the mortgage and reclaim the home through that process. Of course, you never know what the Massachusetts real estate market will be like at that time, but fortunately the Shrewsbury, Northborough, Westborough Massachusetts area in one that has definitely remained more stable than other regions of the country.

The other day I ran across this great article from Inc. Magazine that you may want to check out. Before making a final decision on whether or not this is a realistic option for you, we should sit down and go over the specific situation, and see if it makes sense for you and your family.


About Steve Levine

For nearly three decades, Steve Levine of REMAX Professional Associates, has been one of the top Real Estate agents in the Central Massachusetts.  A ten-time honoree as #1 REMAX Agent in New England, he brings to the table the experience that comes from working successfully with over 2000 Buyers and Sellers, through all types of real estate markets.  Adept at everything from land development, to custom home building, to residential single family and condo sales, his “can do” approach has made him one of the most sought after agents in the region.

A consummate marketing aficionado, and recognized as one of the most innovative Realtors in the industry, he has spoken nationally on many occasions, training other real estate agents on customer service, marketing, and web presence, and is currently developing a suite of instructional videos designed to enable agents to take their business to the next level.

When not out selling Massachusetts’s real estate, Steve is a passionate photographer, musician and writer, and is constantly looking for new ways to express himself.

For a private consultation on your Massachusetts real estate needs, he can be reached by email at steve@shrewsbury.net, by phone at 508 735-4663.

You can also check out his photography website at www.stellarimages.us .