I know the simple answer is to just walk away, however, my wife fell in love with this house and we just had to buy it, according to what she told me.
Seller financing is a way to sell house for more than it’s worth. But it can bite you in the ass if the buyer walks away in a down market. Then you get your house back usually in terrible condition after spending thousands in foreclosure and eviction.
I didn’t even realize that was still a thing. I remember when real estate “experts” were selling courses in how to make money with lease-options. I thought 2008 wiped them all out, but it appears people are recycling old ideas.
I also remembered seller financing on land way back when, and it was always a balloon loan. That way the buyer would have to pay it off or refinance it when the balloon was due.
I don’t get why the buyer agreed to the terms if they really have 750+ credit scores. There are a LOT of financial scams in Florida. Wells Fargo tried to sell my mom SPY indexed annuities. The max return is capped at 4.5%, and the worst is 0.
After talking to the banker, I figured out how they really scam you. You don’t get the SPY dividends. Your return is only the increase in value of the index. They keep the dividends, so you don’t get the benefit of dividend reinvestment which is 40% of historical returns. Older people are so paranoid about losing principal they’ll accept the 4.5% max return, since it’s better than pathetic bond yields. Needless to say the guy didn’t like my questions.
Well…happy wife, happy life…but still…
I let my wife bought $100k worth from WFC I also let her buy the Primary in 2007, advising strongly against and even rope in my sons, she insists, I let her to buy. Is important to say, yes dear to keep your wife happy. Can’t focus on maximizing finance gain and wisdom all the time.