look in the Yellow Pages ask for a referral from a mortgage company, bank, or realtor contact your state’s licensing agency

You can get a referral to a real estate attorney by contacting your local or state bar association. Bar associations are organizations made up of attorneys, and they often provide referrals to their members or can help you find an attorney.

Your RMLO can help ensure that your owner financing documents are compliant with the Safe Act and Dodd Frank Act. Make sure your RMLO is properly licensed by your state. Check with your state’s Department of Business Oversight or equivalent state office to check. [3] X Research source

Check whether you can pay off the mortgage with the buyer’s down payment. If not, then contact your mortgage company and discuss that you want to sell the house.

In fact, sellers should consider having buyers complete a loan application. You can verify references, employment history, and other financial information. [6] X Research source Buyers also benefit from background checks. For example, they might discover that the seller has been financially irresponsible. If the seller still holds a mortgage on the home, there is a risk of default.

a substantial down payment (usually 10% or more) an interest rate that is higher than usual (though less than your state’s maximum allowable interest rate) a loan term you are comfortable with

closing date name of the title insurance company final sale price details about a down payment, if any contingencies which must be met for the sale to proceed, such as an acceptable inspection and a clear title report

borrower’s name property address amount of the loan interest rate repayment schedule terms for late or missed payments consequences of default

For example, you can base monthly payment amount on a hypothetical 30-year mortgage, but schedule payment of the remaining amount in 5 years (balloon). The RMLO will also create required disclosures for the seller/lender.

collects the mortgage payments sets up an escrow handles tax statements and payments makes insurance payments processes payment changes performs collection services, if necessary

You usually must own the house free and clear of any mortgage. Otherwise, you will need your lender to give you permission to sell. Taxes can be complicated and you’ll want to hire a tax professional to help you. You might have to go through the foreclosure process if the buyer stops making payments. This can be costly and time-consuming. However, you may make much more money on an owner financed sale than if you sell the traditional way.

You might have to come up with a larger down payment than you normally would. The owner-seller is taking a risk by financing your sale, and in return they might want a larger down payment or higher interest. Owner financed sales often close faster than other sales. You need to be sure you can make the balloon payment if one is written into the contract. If you break the contract, then you could lose the house and all of the payments you have made up to that point.

If you are a buyer, then you should talk about how to raise your credit score so that you qualify for a traditional mortgage when the balloon payment comes due.

If you are a buyer, make sure that you have your options for paying the balloon payment lined up before you agree to the seller’s terms.

If they walk away, they don’t get a refund on the extra money they paid toward the down payment. If they do walk away, you’ll need to relist your home. [18] X Research source