Creative Real Estate Solutions Tailored to You
Selling your house, the traditional way by listing it on the market may seem like the logical way to sell your house fast, the frustration and stress that comes with that process makes it more hassle than it’s worth. The other alternative to selling the traditional way is to sell your house to a CASH Buyer. Selling to a cash buyer generally is a quicker less invasive process and, in most cases, you can sell your property in as little as 7-14 days. What happens when a cash offer does not work? We know that all homeowners don’t fit in the same box and each have unique reasons as to why they need to sell. As professional home buyers having the ability to offer creative solutions to help sellers is crucial especially in today’s market with the rise in interest rates. We work hard and fast to provide you with the best result and service possible!
Why Creative Financing as a Solution?
Behind on Mortgage Payments
Little to No Equity
Divorce or Separation
Bad Credit
Paying More Than One Mortgage
Death of a Spouse or Family Member
Tired of Being a Landlord
Facing Foreclosure
What is Creative Financing?
Creative financing in real estate is the act of acquiring property in the non-traditional way which usually involves traditional bank loans. The two most common creative financing strategies used to help sellers is “Subject To” and Seller Financing or Owner financing.
Subject To
What is Subject To?
Subject to in real estate is when you buy or sell a property while keeping the existing mortgage in place. A buyer who purchases a home “subject-to” the existing financing effectively takes over the seller’s outstanding mortgage balance and makes the payments on the sellers’ behalf. It is also a desirable financing choice for regular homebuyers with interest rates climbing.
Seller Financing
What is Seller Financing? (Owner Financing)
Seller financing, or owner financing, is a home buying process that essentially lets the potential home buyer buy real estate directly from the current owner of the home. This process cuts out the banks and allows the seller to become the bank.
Sell Your House Using Creative Financing in 3 Easy Steps
Gather Details/Verify Facts
Prepare Offer/Purchase Paperwork
Close with Title Company or Attorney
How Does It Work?
Subject To
Purchasing a property subject to an existing mortgage is known as subject-to buying. It indicates that the seller isn’t clearing the existing mortgage. The payments will now be handled by the buyer. The purchase price paid by the buyer includes the remaining balance of the current mortgage.
As an example, you the seller originally had a $300,000 mortgage at the time of purchase. You have already paid $25,000 of it when you made the decision to sell the house. Subsequently, the new buyers would take over the existing mortgage balance of $275,000 and make the payments on your behalf.
Seller Financing/Owner Financing
The most typical form of seller carryback, sometimes commonly referred to as owner or seller financing.
Let’s imagine you are ready to sell your house for $100,000 and you no payments left on it. You find a buyer that is interested in seller financing and they want to put down $50,000 on this transaction. The seller would to carry the equity balance of $50,000 at an interest rate that is agreed upon by both parties. The buyer would make payments to the seller on that $50,000 at an interest rate and amount agreed upon by both parties until it is paid off.
Case Study
The owner was experiencing a few different things.
Purchasing a property subject to an existing mortgage is known as subject-to buying. It indicates that the seller isn’t clearing the existing mortgage. The payments will now be handled by the buyer. The purchase price paid by the buyer includes the remaining balance of the current mortgage.
As an example, you the seller originally had a $300,000 mortgage at the time of purchase. You have already paid $25,000 of it when you made the decision to sell the house. Subsequently, the new buyers would take over the existing mortgage balance of $275,000 and make the payments on your behalf.
There was a pending divorce.
With those three key pieces of information, my team came up with a few different options for the owner.
Rent the property, essentially becoming a landlord.
This was a great solution as the seller managed to avoid having a foreclosure appear on their credit report for many years and will eventually be able to buy another house. We intern acquired a great property and built a lasting partnership with the seller.
– Shalah Anquilo
Contact Onyx Homes today
Facing foreclosure in Chicago, IL is always an urgent matter. Talk to your lender and see if you can work things out, and if that doesn’t work, selling your Chicago home is always a viable option.
So whether you’re already in the pre-foreclosure process or you’re facing imminent foreclosure in Chicago, Onyx Homes is here to help. Contact us and learn more about our services and how we can help you get through foreclosure today.