Is seller financing advisable?

Quinny · #1 03-07-2006, 07:01 PM

We have an offer on our house that includes little money down, an interest only monthly payment and then a baloon payment for the remainder, due in several years. Obviously we would hold title until the final payment, however, are there any events in which the gov't could seize the property for any reason? Given that the villa is the only collateral, we want to be sure to cover the basics. The only other two items is for a 3rd party to keep the accounting and to ensure that the buyer gets home owner insurance.

Any thoughts on this?

Thank you.

JRR · #2 03-07-2006, 08:09 PM

From what I have read of the many horror stories here, I would think twice and then some! Once they are in the house, seems almost impossible to get someone out! I wouldn't worry about the gov't as much as the people living in the house. Once they are in....you're stuck!

Just my two pesos

JRR

Rocky · #3 03-08-2006, 06:34 PM

You would first have to have a good lawyer drawing up a contract that truly protects you, then be sure that the interest payments are as good or better than what you would rent it for, in case the buyer backs out, and a substantial deposit at the point of signing.
Of course, it is possible that if the buyer defaults, he might not want to vacate the premises, but, as it would be a sales contract and not a rental, it would be a lot easier to resolve.

Ken · #4 03-08-2006, 08:49 PM

You clearly need the advice of a good attorney, and you will get one as soon as Fabio Guzman, the attorney who answers questions in this thread, responds. Until then, consider what people say, but don't act until you get Fabio's input.

Quinny · #5 03-09-2006, 10:13 AM

Thank you. I appreciate the insight and especially like the idea of making sure the interest payments are similar to what we would rent. I sure would appreciate Fabio Guzmans's advice of potential risks. Thanks again.

Fabio J. Guzman · #6 03-12-2006, 12:15 PM

You won't have a problem evicting the buyer if he defaults although it would take longer than in the US. The main thing is to get a good contract.

Quinny · #7 03-12-2006, 09:49 PM

Quote:

Originally Posted by Fabio J. Guzman

You won't have a problem evicting the buyer if he defaults although it would take longer than in the US. The main thing is to get a good contract.

thank you!!