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How to Sell Your House Before the Tax Credit Deadline...Part I
The inspiration of this post was selling your house before the 2009 tax credit of $8,000, expires on November 30th. However using some of these same techniques could be used at any time.
The deadline for the buyers to get a house under contract, and get the financing through, and closed, is now. Many buyers would not be able to get their financing ready in time to close by the 30th of Nov. Although many think this will be renewed, we do not know until the government makes the decision. Here are some ways to sell the house.
Sell by Owner Financing
- Pricing should be just above market value. Owner financing gives an extra value to the home.
- If that price is above what you owe, a wrap mortgage is created. The original loan stays in place, and the additional is added to it. The payment is figured on all of it by choosing an interest rate that pays the set mortgage amount, and payment on the additional amount. The interest rate can be higher than the going interest rate. You can find a mortgage calculator by using a search engine.
- Money for the down payment can be in one sum from the buyers funds. Or, a promissory note can be drawn up with using the tax credit as the source of repayment. Or use a combination of both.
- Use an "agreement for deed" contract, which is called "land contract" in some areas.
- The actual deed is usually not transferred until the loan is paid off. Other exceptions can be put in the contract, such as a 3 year call on the loan, and that structural changes cannot be made without written approval.
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Posted by Kathleen Couch at 10/22/2009 6:49 PM 
Categories: Selling
Tags: tax credit owner finance sell house
Categories: Selling
Tags: tax credit owner finance sell house
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