What are the pros and cons of owner financing a home?

Question

I have a home that I am interested in selling and am looking at various ways to entice buyers in this tough market. One option told to me was owner financing the property. What are the pros and cons as a person that would be financing my property? Also, what would be the difference if I still have a small mortgage on my property?

Answer 1

Pros: you will have lots of buyers to choose from

           you can make a good profit

           you have the right to foreclose and take back the home

           if payments are not made as the promissory note

          states

Cons: You will need to screen all of those buyers

            Profit is long term

            You will have to go through the legal process to

            foreclose if necessary

This is in my state of Texas, you should find out what the rules are where you are. Many investors in my area have become quite wealthy with owner financing. One reason is that when the owner forecloses, they lose all equity in the home and the financier can then sell the property again, keeping the last person's equity. Not saying this is right or wrong, just a fact.