seller financing

(redirected from Seller Finance)

Seller financing

Funding a purchase by a seller's loan to the buyer, the buyer takes full title to the property when the loan is fully repaid.

Seller Financing

An agreement between a buyer and a seller of an asset, usually real estate, where the seller directly holds the debt. That is, rather than going through a financial intermediary such as a bank, the seller and the buyer conclude the transaction and the buyer makes payments on the asset at the agreed-upon rate of interest directly to the seller. This is useful for the buyer when he/she could not otherwise obtain financing. It can also be useful because the interest rate is often lower. Likewise, the seller can often receive a higher return on the sale of the house because he does not have to pay commissions or other costs to the financial intermediary.

seller financing

The practice of a seller of real property holding some or all of the debt necessary to purchase the property. It is widely believed that seller financing is the last resort of borrowers who cannot obtain financing elsewhere,and the last resort of owners who cannot sell their property without offering it to buyers who cannot obtain financing.In reality,many property owners prefer to finance the sale of their properties,thereby earning a better rate of return on their money than if they obtained cash and then attempted to invest that cash in the marketplace.By the same token, many purchasers are able to secure somewhat cheaper mortgage loan interest rates than generally available in the marketplace if a seller will hold the financing.

References in periodicals archive ?
NoteWorld, which has been in business for 30 years, is the nation's largest servicer of seller finance loans and personal debt escrows, and also purchases retail seller finance notes.
Prior to being appointed President by C-BASS, Remsberg fulfilled the duties of Executive Vice President while overseeing the seller finance servicing business unit.
NoteWorld was founded to serve organizations in the niche market of seller finance through third-party servicing and product offerings that enhance seller finance transactions.
DALLAS -- Bayview Financial[R], an $11 billion real estate lending and investment finance company, announced today the promotion of Bob Repass to managing director of Bayview First Funding(sm), the Dallas-based seller finance division.
Repass brings more than 24 years of banking and financial services industry experience - the past 16 years focused on seller finance - to his role as managing director.
Bob Repass has proven to be an invaluable asset to the Bayview First Funding team, from his experience in the seller finance industry to his proven track record over the past five years at the company," said David Ertel, Chairman and Chief Executive Officer of Bayview Financial.
based Metropolitan Mortgage & Securities as national contract buyer, purchasing more than $150 million in seller finance loans at the company's North Carolina acquisitions office.
based InterBay Funding, LLC seller finance subsidiary to Bayview First Funding, LLC, effective January 1, 2007.
The Bayview First Funding(sm) name change enables the seller finance division to better communicate and leverage its affiliation with parent company, Bayview Financial.