Seller financing questions and answers

Yes. They are two names for the same arrangement: the seller acts as the lender and the buyer pays the seller over time. Some people also call it a seller carryback.

The buyer makes a down payment at closing and signs a promissory note for the rest of the price. The note sets the rate, the monthly payment, the term and any balloon payment, and a deed of trust or mortgage secures it against the property. The full explanation is on what is seller financing.

Yes, in all 50 US states. For residential property, the Dodd-Frank Act and the SAFE Act add requirements for sellers who finance more than three properties in a 12-month period, and states have their own rules. Use a real estate attorney.

Under a note secured by a deed of trust or mortgage, the seller can foreclose through the same state process a bank would use. Under a land contract, the process depends on state law. This is why an attorney should draft the documents and record them.

Owners list them here themselves. Each listing says which down payments, rates and terms the owner will accept.

Browsing is free. Some actions cost credits: publishing a listing costs 4, the first message to a seller costs 10, and sending an offer costs 10. Replies, counters and accepting are free. New accounts start with 20 credits, and more cost $0.50 each.

Sign in and use the message button on the listing. Emails, phone numbers and links are hidden in the first message, so talk here until you have a deal.

No. Owners write their own listings, and the terms of any deal are negotiated between buyer and seller. Do your own due diligence before you pay anything. The guide for buyers has a checklist.

When the owner accepts an offer, the listing is marked under contract and leaves search; new messages and offers are paused. If the deal falls through the owner can put it back on the market. Once it is sold or taken down it stays off search. Conversations and offers you already have stay in your account.

Swap Inc. Its mailing address is in the footer of every page, and you can reach it at hello@sellerfinanced.com.

It is up to the owner. Down payments of 10 to 30 percent are typical, and rates are usually a point or two above bank rates.

Sometimes. Some owners will take a car, a boat or land toward the down payment and finance the rest. Ask the owner when you message them, and put it in your offer's note.

Yes. An attorney should draft or review the promissory note and the deed of trust or mortgage and make sure they are recorded. A title company should run a title search before closing.

Create an account, add the listing with the terms you accept, and publish it for 4 credits. The steps are in the guide for sellers.

Yes. You can change your terms at any time, or archive the listing to take it off the site. Publishing it again within 30 days is free; after that it costs 4 credits again.

You can collect payments yourself, but most sellers use a loan servicing company. It collects payments, tracks the balance and sends year-end statements to both sides.