The declining real estate market has prompted a huge number of desperate sellers to offer creative financing possibilities to potential buyers. Seller financing ads, in particular, seem to be increasing.

San Francisco Gate’s On the Block blog explains:

“The appeal of seller financing is understandable — the buyer doesn’t have to jump through hoops to get a mortgage from a traditional bank. The seller, meanwhile, benefits as he/she may be able to spread the net gain on the sale over a number of years, thus softening the tax blow.

It’s not clear that buyers are biting, but sellers are certainly offering financing with a vengeance. Roughly 80 Bay Area listings use the term “seller financing” on Craigslist…”

Many of these seller financing proposals are bound to fail because of “due-on-sale” clauses on the sellers’ loans. However, buyers can still find plenty of legitimate seller financing deals in today’s market.

See Also:

Seller Financing Guide

Seller Financing Laws

Tags | creative financing, due-on-sale, Seller Financing