How to Sell Your House With Owner Financing In Louisville KY

Selling My House As Is in Kentucky

We Buy Houses in Kentucky is dedicated to making the home buying and selling process easy. One of the ways you can sell your home is to offer your buyer owner financing. When selling your house with owner financing in Kentucky, you act as the bank for your buyer.

You will set the terms your buyer will follow, along with requirements for the down payment, interest, and non-payments. If you’re interested in selling your house with owner financing in Kentucky, you must protect yourself throughout the process.

What to Do When Selling Your House With Owner Financing in Kentucky

Require Buyer Qualifications

As the bank, you decide to approve or deny the buyer. That also means you are responsible for vetting your buyer to determine if your buyer should be approved.

You should conduct the same procedures that a traditional bank would follow to determine if you should approve a buyer. This includes requesting your buyer to fill out a loan application, verify employment information, run a credit report, and conduct a background check.

You must examine and verify all the information your buyer provides to determine if your buyer should be approved. Failing to collect and verify all of the information provided by the buyer may cause you to approve a buyer that a bank would have denied. This leaves you a buyer with an increased chance of defaulting on the loan.

Make sure you collect and verify all information the buyer provides before you decide to approve or deny.

Write a Contract

After you have found a credible buyer, you will need to put the owner’s financing in writing. This protects both you and the owner. You will need to write a contract that includes the down payment information, loan term, interest rate, payment schedule, and what actions are taken for non-payment.

The contract needs to include legal vocabulary that clarifies the contract to both the buyer and the owner. Without clear and legal vocabulary, you can find yourself in a legal battle with your new owner.

The contract will need to be signed by you and the buyer with a promissory note filed with the county records department. For Louisville, you will file the promissory note with the Jefferson County records department. This is what makes the contract legal and is what will protect you in case your buyer defaults on the loan.

What Are the Benefits of Owner Financing?

As the bank, you collect the interest paid on the loan. This means more money in your pocket in the long run. When you sell a home at a lump sum purchase price, you don’t get to collect the interest that will be paid on the purchase price of the home—however, with owner financing, you get to collect the interest on the loan, which means more money for you.

You also get to choose your buyer when you provide owner financing. This may be a family member or friend that you’re helping out, or this can be someone who is in the process of rebuilding their credit.

Contact Us

If you’re ready to sell your house in Lousiville, Kentucky, or surrounding areas, contact us! We will be glad to help you start selling your Kentucky house.

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