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Real Estate


Tom Kelly
Tom Kelly
The Real Estate Adviser
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March 8, 2007

The Real Estate Adviser: Beware the pitfalls of seller financing

By TOM KELLY
Special to the Journal

Some homes take longer to sell than others, creating anxiety for sellers who absolutely have to get a deal closed within a specific period of time. And, when it rains, it pours.

I recently got a call from a former college classmate who had taken a new job in a different state. After his home sat on the market for months, he finally struck a deal with a potential buyer. For weeks it appeared to be headed to closing and the seller, feeling confident with the buyer's borrowing power, even made a downpayment on another home. The seller became upset, however, when the buyer walked away from the deal because the buyer would not agree to a “soft prepay” loan provision offered by a national lender.


 
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