1. Can SNHST purchase my  home?

The Scott Neal Home Selling Team (SNHST) is a full-service real estate team specializing in marketing and facilitating the sale of residential real property in the north Texas area.  While we do offer guaranteed sale and immediate buyout programs, as well as partner with several real estate investors who have the resources and financial capability to purchase homes, our primary objective is to help homeowners get the highest price possible that the market will bear for their property. 


2. I have a mortgage/lien against my property, can I still owner finance? 

Yes!  Our team practices and enforces FULL DISCLOSURE!  We will need to know about all liens and mortgages against the property before proceeding with the sale, which will be disclosed to the prospective buyer.  Most mortgages contain a “Due on Sale” clause, and the seller will need to review their original closing documents to confirm such language.  This may have implications, but we can discuss how to overcome such obstacles that we may encounter.  We will do so legally, morally, and ethically.

3. If the buyer defaults, what happens? 

There are a multitude of possibilities that can take place.  The two main scenarios are:

• Deed in Lieu of Foreclosure - voluntarily signed by the buyer to avoid a further negative credit rating (this happens most of all, because the buyer has worked for months to repair their credit and they don’t want their work and money to have been for nothing).
• Foreclosure - a rare occurrence, but if executed properly, it can allow you to regain possession of the property faster than you may have through eviction.
  

4. Are there closing costs, and who is responsible for paying them?

Yes.  Owner-finance closing costs range from $500-$1500 and are typically paid by the buyer, however all items in real estate transactions are negotiable.  But, owner-finance closing costs are generally much lower than traditional closings (normally 4%-6% of the sales price), often netting the sellers more money.

5. How long will I be owner-financing the property to the buyer before a refinance? 

The length of time varies. We have buyers who can refinance in 6 months and buyers who will need owner financing for 15-30 years. We will explain to you the advantages of both scenarios and let you weigh the options.  Our goal is to match you with a buyer that will enable you to achieve your financial goals with the sale.
 

6. What are the inherent risks of owner-finance compared to Rent-to-Own? 

Rent-to-Own is not a secured transaction.  Sellers are responsible, as the landlord, for all repairs and maintenance as outlined by Chapter 92 of the Texas Property Code.  The State of Texas will not allow a lease with the intent to purchase extend past 179 days.  Some attorneys and investors, in an attempt to work around this law, will write a residential lease with a clause that gives the tenant/buyer first right of refusal.  This essentially means that the buyer will be able to refuse the right to purchase and the seller has the right not to sell to the buyer unless the terms are to his/her liking.  In our opinion, sellers should consider selling or leasing, rather than combining the two into one legally frustrating transaction. 

7. Can I have my own attorney create the owner finance documents? 

This is a case-by-case basis, but we prefer that the Seller and Buyer allow our prefferred vendors handle the legal documents.
 

8. Once we close, what are my responsibilities? 

There are no responsibilities to the seller except to collect a check every month!  Everything is handled by our third party payment processor, Texas Note Company.

9. During the owner-finance, am I responsible for property taxes and HOA dues?

No.  The buyer will escrow the taxes and insurance with their monthly payment.  However, sellers are responsible for any prorated amount from the beginning of the year until the date of the closing.
 

10. How do I receive my payments? 

We have a third-party payment processing and note servicing company that will accept the payments from the buyers, handle invoicing, and disburse funds. 

11. If something breaks or needs to be maintained, who is responsible? 

The buyer has become the owner, the seller is the bank.  The seller/bank has NO repair or maintenance responsibilities.  This is the benefit for owner-financing rather than leasing.
 

12. What are SNHST fees for this service? 

The terms of the listing agreement will govern how SNHST is compensated.