As of June 14, a payment plan is now available! I have already decided that I am not interested in simply renting this property. Nor will I be offering any rent to own or rent with the option to buy contracts.
What I am now offering is owner financing. With owner financing, the buyer gets a mortgage and takes ownership of the property right from the issuance of the mortgage and the close of the sale. The mortgage in this case is issued by the seller, which would be me, instead of by a bank, which saves both the buyer and the seller a fairly annoying list of hassles.
As with a bank mortgage, there is a lien on the property that goes away when the promissory note associated with the mortgage is paid up. If the buyer failed to pay the mortgage note, I would have to file a foreclosure exactly as a bank would, and then I would reclaim ownership and get the deed back.
I have a company identified that can handle all the documents and all the details of a seller financing with a mortgage type of transaction. That same company can then process the payments and will make sure that the buyer's credit record reflects the payments made on the mortgage.
Here are the 7 basic requirements that a buyer must meet and agree to for him or her to be a suitable buyer under the plan:
(1)The price of the property will be $23,500.
(2)The minimum down payment will be $5,000 and a larger down payment is recommended.
(3)The buyer must be able to document income, but any kind of income is acceptable.
(4)The buyer must not have bad credit.
(5)When the mortgage payment, the mortgage servicing charge, the property tax, and the insurance premium is added up, the buyer must be able to make payments of approximately $500 per month.
(6)The buyer must agree that there will be a $19 per month mortgage servicing charge, which is the amount the company I am using to set up and service the mortgage charges for all the work they do and all the assistance they provide to both the buyer and the seller. For example, this company will see to it that the buyer's credit record is improved by the inclusion of his or her payments on this mortgage.
(7)The buyer must understand and agree that he or she is not merely renting the property but is owning the property.
If you can not meet and agree to each of these, it would make no financial or economic sense for you to buy this property.
If you do meet and agree to the above seven items, here are the specific details regarding the mortgage and the small but required tax and insurance payments:
Purchase Price: 23,300
Minimum Down Payment: 5,000
Loan Amount: 18,300
Payment Frequency: Monthly
Loan Period in Months: 48
Loan Period in Years: 4
Interest Rate on Principal: 5.00%
Payment for Principal and Interest per month: 421.44
Mortgage Service Charge per month: 19.00
Total Payment for Property per month: 440.44
Other Required Ownership Costs:
Property Taxes per month: 32.00
Property Insurance per month (estimated) 30.00
Estimate of the Total of Monthly Payments to Own Property: 502.44
Full ownership (free and clear) of the Property in: 4.0 years
Note: The insurance might be as little as 15.00 per month, or could be higher than 30.00 per month, depending on the insurance company and policy specifications offered by the insurance company and/or chosen by the buyer.
In the case of more than one buyer asking for the mortgage option, the one who offers the higher down payment will be selected. If the down payment is more than $5,000, the buyer can choose a shorter term with a similar monthly payment, or else the same term with a lower monthly payment.
As always, anyone who has questions should either email me or give me a telephone call. The contact info is on the main page and on the right margin of this page.
