With surveys indicating that as many as a third of real estate deals are falling apart due to financing issues, today’s sellers might need to be more creative to ensure their properties sell. They could take back a second mortgage for an amount that enables the buyer to meet the lender’s down payment requirements, provided the lender agrees to such an arrangement. In addition to seller-provided financing, another tactic for a home that is not attracting buyers is to sell it “subject to the existing mortgage,” which means the buyers take over the existing mortgage payments for a specified period, after which time they must obtain a new loan. This arrangement helps relieve sellers of their mortgage debt and helps buyers whose credit scores might not be good enough to secure a traditional loan; and while it triggers the due on sale clause, experts say banks will not foreclose if the payments are being made on time. Finally, sellers can unload their properties to buyers for a low down payment as long as they are willing to put in the sweat equity needed to get the home back in tip-top shape. The renovation details are written into the contract, and buyers must complete the repairs by the agreed-upon date to qualify for long-term seller financing. | Read More