Creative Financing

Creative financing is any method of real estate financing that does not typically involve going to a bank for a new loan. The two most common types of creative financing are seller financing and subject to financing.

Seller financing, also known as owner financing or seller carryback, is a method in which the seller of a property provides financing to the buyer instead of the buyer obtaining a loan from a traditional bank or mortgage lender. In this arrangement, the seller acts as the lender and allows the buyer to make payments over time, typically in the form of installments. The buyer and seller negotiate the terms of the loan, including the interest rate, repayment schedule, and any down payment required.

Subject-to financing, also referred to as a subject-to deal or taking over the existing mortgage, is a creative financing method where the buyer purchases a property while taking over the existing mortgage loan of the seller, without formally assuming the mortgage. In this scenario, the buyer becomes responsible for making the mortgage payments, but the original loan remains in the seller's name. This method is commonly used when the seller is motivated to sell quickly and may be facing financial difficulties or foreclosure. 

Both seller financing and subject-to financing are alternative options in real estate transactions that can offer flexibility and opportunities for buyers and sellers. It is my goal to help sellers out of difficult situations. If you know anyone in a difficult situation with any real estate, please let me know if I can help.