Is it Time for Seller Financing?

We all know that the market in inundated with short sales and foreclosures. That makes it hard on everyone, most importantly, Sellers who have equity in their home and have maintained it in good condition over the years. Prices of homes in short sale or foreclosure situations are pushing prices down all over the place.

Add to this the fact that it is now harder to get a mortgage than anytime in recent memory. Sure, that's probably a good thing because a lot of people got into homes they couldn't afford. But what about those Buyers out in the world that can afford the house but can't get a mortgage for a whole host of reasons. Less than perfect credit comes to mind (and by less than perfect, I'm talking about credit scores in the mid 600s which used to be considered "good"). However, the self-employed also come to mind.

In Maryland, our Legislature, in their infinite wisdom, have outlawed the "stated" mortgage by requiring documentation that the borrower can re-pay the loan. What about "Joe the Plumber" (I couldn't help myself!) who would be a self-employed contractor. What about Ken the Realtor (that would be me) who earns a decent income but also has a boatload of business expenses that are legitimate and valid tax write-offs. By the time my CPA is done with me at the end of the year it looks like I couldn't afford a McDonald's Happy Meal, let alone a mortgage,

So, will Seller financing become an alternative more and more people begin to look at?

I understand from fellow Rainer, Matthew Rosov, that there are investors out in the world that will buy the Seller financing from the Seller allowing them to realize the full proceeds from the sale of their house while getting a buyer to settlement.

I need to dig into this further because I do, in fact, think this might be a creative way to get some people to the settlement table with money in their pockets or, in the case of home buyers, a place to call their own.