During my teenage years, I overheard my parents discussing home mortgage. I learned that our house was for sale and my parents were planning to have it in cash or mortgage. My Mum decided to have it on seller finance rather than the conventional financing process. Since this term was new to me, I asked my Mum what seller finance was and what makes it different from the traditional financing method. She explained the traditional financial process; the buyer can go to the bank or lending institution to apply for a loan to buy the house in instalments coupled with add-on interest. With the seller financing scheme, the seller takes care of entire financing of the house.

The seller finance process can unload the burden of the buyer in complying with all the requirements that are asked by the banks or lending institutions, not to mention the hassle and agony of waiting for their approval. More to the point, the buyer can request for a more affordable instalment term and can enjoy a lower interest.

The flexibility and negotiability of the down payment makes it more convenient than conventional financing. Both parties can agree on the amount and mode of the down payment like the periodic lump-sum payment method. What makes seller financing advantageous is the lower closing add-on expenses which are regularly charged to the buyer by most financial institutions. These add-on expenses may include the processing fees, administration fees and miscellaneous fees.

Another benefit about seller financing is that the buyer and seller can agree on the interest rate, the mode of payment, the terms and conditions. The seller can go into a foreclosure process based on what they had agreed if the buyer defaults on his payment as stipulated in the terms and conditions.

However, there are certain risks in seller financing. If the buyer fails in making the payment, the process of the legal foreclosure procedure may take considerable time, effort, and money. Another disadvantage is that the seller may not have the skill of a good credit investigator that banks and lending institutions have. If the buyer turns out to be a bad creditor, chances are it may lead into foreclosure.

Another disadvantage is that the good condition of the property cannot be assured.

Save yourself from being trapped on a renting merry-go-round situation. Own your own house now through seller finance program. If it's about you and your family's welfare, only trust DIYRentToBuyHouses.Com.Au.