Seller Financing

What is seller financing all about? Seller financing is a loan that the seller of a property provides to the buyer to cover all or some part of the sale price. Seller financing is one efficient tool in bringing sellers and buyers together to close the deal. It can benefit both parties and is a very viable option to sell real estate. Seller financing is more common on sales of large parcels of land that lenders have not financed. Whether or not you are the seller or the buyer, you might want to know more about this kind of financing. Allow me to discuss the advantages and disadvantages of seller financing.

Advantages of Seller Financing.
This kind of financing gives big savings on closing costs for both the buyer and the seller. The buyer may also request to include in the sale any household appliances to his liking or even cars for that matter. This kind of financing is a good alternative for a buyer who cannot qualify for a conventional loan. The seller on the other hand, could receive a much higher yield on investment by receiving the equity with interest. A seller could also demand a higher price for assisting the buyer with his financial needs. The seller does not have to undergo costly repairs as often required by mortgage lenders. The seller could require the buyer to purchase an insurance policy known as PMI for his protection against any default. The seller could choose which document, such as deed of trust, land sale document, mortgage, to hold on to until the loan is fully paid.

Disadvantages of Seller Financing.
One of the disadvantages of this kind of financing is there is a possibility that the buyer could make full payment of the loan but still could not get hold of the title of the property due to some encumbrances unknown or not divulged by the seller. The seller might not be able to make the payments on a senior financing and the property may be subject to a foreclosure. Unless otherwise agreed and negotiated by both parties, the buyer may not have the protection of a mortgage insurance, home inspection or appraisal to make sure that he is not paying excessively for the property. Sellers too may not be able to get the buyer’s employment or credit background thoroughly, which might eventually lead to a foreclosure of the property. There is also a possibility that the seller will agree to a small down payment to assist in the sale and the buyer later on might abandon the property because of the minimal investment that was made.

To sum it up, a seller-financed sale is good as long as it addressed the concerns of both the buyer and the seller. During negotiations, it is important to keep an open mind on the details of the sale. The main thing is that both parties are honest and sincere in their dealings. Negotiations must be done in good faith so that both can benefit from this kind of financing.

Considering Different Types of Motor Vehicle Finance

Zooming around town or to and from work or school in a new or used vehicle -at any rate, in something far more agile and enjoyable than your last mode of transportation– is a joyous experience that can provide a great deal of convenience and even entertainment for busy motorists. But choosing an unwise or inappropriate financing option for a new or used vehicle can seriously detract from the enjoyment of the drive. The world of finance, particularly when it comes to automobiles, can be confusing, and some car buyers work with the first option they’re offered in an attempt to bypass the frustration and fine-print. But taking the time to understand the different types of motor vehicle finance available, including the situations in which they work best and the time commitments involved, can lead to an experience that’s hassle and worry free -both now and in the future. Individuals are likely to primarily encounter two basic financing options, either through a broker or directly from the party selling the vehicle. A consumer car loan is a very popular choice and is widely used when the individual is using the vehicle for personal purposes. A consumer car loan considers the vehicle itself as the security for the loan. This type of loan comes with a number of terms including the basic interest rate, establishment fee’s, monthly fees and discharge costs. It’s important to ensure that all fees are disclosed prior to signing an agreement for a consumer car loan. It is imperative that you feel comfortable and understand what you are signing up to.

A basic personal loan affords more freedom due to its general opportunities for use and for this reason some applicants take up this option when purchasing an imported vehicle or a vehicle that does not qualify as adequate security, for example, a vehicle older than 10 years. Businesses can take advantage of a number of finance options for motor vehicles. Some of the most commonly available financing types include Chattel Mortgage, Commercial Hire Purchase, Novated leases and your standard Car Lease.

Depending on the specific financial and strategic needs of a business the best set-up for the business or employee using the vehicle for business purposes will be met, a business car financing plan should be developed to ensure that assets aren’t left depreciating, and that purchasing power, where desired, is amply afforded. Another option for many businesses is a car rental agreement, which allows for equipment upgrade but places no responsibility for the residual value of the vehicle in the business’ hands. The right motor vehicle finance option for an individual or a company is one which complements individual needs and preferences, and which makes sense for both the short and the long term. Either through a broker or on one’s own, determining which car financing plan is best for you is a sure way to realize smooth driving down the line.