Owner financing here

[ea93105]

I sold a property in the states with owner financing and the sale was set  up so that  I am the first lien holder on the title.  Can it be  done here in a similar  way to protect  me as the seller in case of default ? 

 

 

 

[mike7129a]

yes

[Mainecoons]

Yes.  Notario does it.  I remember it being pretty expensive.

[ambconsultants]

No not very expensive if you do it at time of sale. It is called reserva de dominio. 

[traderspoc]

Its commonly done, when someone puts half down, and finances the rest at 10% or more. put if they don't pay could take  many years to foreclose on property.

I know of someone enjoyed the 10% for many years, when they would sell a property he was paid off.

BUt one property deal he helped finance  600.000 he financed 300.000 at 10%, after 1 month no payment was made. the person he financed tried every trick in t he book to not pay.

its been over 7 years in court,    He got sick, his kids or now dealing with it Mexico courts. meanwhile the scammer has been renting out the property , making a nice income

the person had good references was a local mexican business man and was trusted.

 

but it was a scam from he beginning

 

[rckrckr]

The down payment and financing rate are completely up to negotiation between the buyer and seller. 

[happyjillin]

On 8/14/2020 at 9:23 PM, ea93105 said:

I sold a property in the states with owner financing and the sale was set  up so that  I am the first lien holder on the title.  Can it be  done here in a similar  way to protect  me as the seller in case of default ? 

 

 

 

Not a good idea. If you're going to sell here do it for cash.

[lakeside7]

19 minutes ago, traderspoc said:

Its commonly done, when someone puts half down, and finances the rest at 10% or more. put if they don't pay could take  many years to foreclose on property.

I know of someone enjoyed the 10% for many years, when they would sell a property he was paid off.

BUt one property deal he helped finance  600.000 he financed 300.000 at 10%, after 1 month no payment was made. the person he financed tried every trick in t he book to not pay.

its been over 7 years in court,    He got sick, his kids or now dealing with it Mexico courts. meanwhile the scammer has been renting out the property , making a nice income

the person had good references was a local mexican business man and was trusted.

 

but it was a scam from he beginning

 

Some years back there was a person (gringo) that worked as a "broker" and would introduce buyers to lenders for a fee. As you mention it is a can of worms (snakes) in MX try to get a bad deal deal resolved. As I recall 10/12% was the going rate. But like all hi returns there are HI RISKS.

I believe that when Spencer arrived at Lakeside he was trying to promote Loans , but I do not think that was a success. Perhaps he will correct me 

[solajijic]

There are about a dozen people locally who do 30-50% loans for 5 to 8 years or so charging 8 to 14%.  Most of the real estate companies know who is offering at any given time. A realtor might not but the realtor broker usually can put something together.

[tomgates]

When we bought in 2005, the seller financed $99,000 of the $249,000. Three years later I repaid him the adjusted principle balance. When we sold the house this year, there was a lien that was not taken off in 2008 when the loan was repaid. It was fortunate that we have kept up with the seller who is in Texas. I had to fly up there with a document the notario gave me for them to sign and then to Austin to get it apostled. The document basically said they had no financial interest in the property. A word to the wise if you do a similar financing deal, make sure the lien is removed when you pay back the loan. Get something in writing from the notario.

[happyjillin]

3 hours ago, tomgates said:

When we bought in 2005, the seller financed $99,000 of the $249,000. Three years later I repaid him the adjusted principle balance. When we sold the house this year, there was a lien that was not taken off in 2008 when the loan was repaid. It was fortunate that we have kept up with the seller who is in Texas. I had to fly up there with a document the notario gave me for them to sign and then to Austin to get it apostled. The document basically said they had no financial interest in the property. A word to the wise if you do a similar financing deal, make sure the lien is removed when you pay back the loan. Get something in writing from the notario.

And yet another good reason to throw financing vs. cash out the window.

[pappysmarket]

6 hours ago, tomgates said:

When we bought in 2005, the seller financed $99,000 of the $249,000. Three years later I repaid him the adjusted principle balance. When we sold the house this year, there was a lien that was not taken off in 2008 when the loan was repaid. It was fortunate that we have kept up with the seller who is in Texas. I had to fly up there with a document the notario gave me for them to sign and then to Austin to get it apostled. The document basically said they had no financial interest in the property. A word to the wise if you do a similar financing deal, make sure the lien is removed when you pay back the loan. Get something in writing from the notario.

Yes...wasn't that fun Tom? Nice to see you again though.