Non-Performing Notes

/Tag: Non-Performing Notes
5 07, 2018

What Happens When a Buyer Defaults on a Seller-Backed Mortgage?

2018-07-06T10:02:18+00:00

There’s no question the decision to offer seller financing involves an amount of risk. A buyer wouldn’t be seeking seller financing if their financial situation allowed them to secure a traditional bank loan. That’s why sellers should secure a large down payment on a loan. In addition, they should set an interest rate that’s higher than what banks can offer. The higher down payment means a buyer has more skin in the game. Making defaults less likely. The higher interest rate is the price a buyer pays for their less than stellar credit position. Unfortunately, even when a seller makes [...]

What Happens When a Buyer Defaults on a Seller-Backed Mortgage?2018-07-06T10:02:18+00:00