Third Party Administrative Services for Seller Financed transactions since 1979
What is Seller Financing?
Seller financing is an arrangement whereby the Seller provides a loan to the Buyer as part of the purchase agreement.
The Seller agrees to receive payments over time from the Buyer instead of receiving the entire proceeds of the sale at the time of closing the transaction. Essentially, the proceeds are “loaned” to the Buyer who then makes payments on an installment basis. The sale transaction can involve a variety of things; real estate, businesses, vehicles and other assets.
The Buyer signs a Note and Deed of Trust or Contract of Sale in the Seller’s favor that places a lien on the property and thereby secures the loan. The roles of the Seller and Buyer now become Lender and Borrower.
The Seller, now acting as the Lender, collects payments from the Borrower, including interest on the money, until the loan is paid in full.
There are many reasons Seller Financing is an alternative to traditional financing:
The seller prefers to receive a reasonable return on equity with monthly income rather than payment in full at the time of the sale.
A good buyer cannot qualify for a traditional mortgage, either lack of credit or sufficient down payment.
The property for sale does not meet requirements for traditional loans.
A larger group of potential buyers is desired. In a slow market, owner financing creates more interest in your property.
At a later date, after you have received monthly payments for a period of time you may choose to sell your interest for a lump sum. There are many companies and individuals who buy the seller’s interest in owner-financed properties.
Based in Boise Idaho we service contracts throughout Idaho and several other locations across the country.
Idaho Escrow LLC is licensed through the State of Idaho Department of Finance and is fully insured to protect the interest of customers and clients.
Being a smaller company, Idaho Escrow LLC takes pride in providing personal service to the Buyers and Sellers involved within each escrow account managed.
Provide professional, trustworthy and consistent service to each and every customer we serve. Represent the integrity of each transaction as a neutral third party; keeping the Seller’s/Lender’s and Buyer’s/Borrower’s rights and obligations in balance. Create a work place that supports our employee’s individual potential, creativity and integrity.