In this country millions of homes are sold every year. In most cases buyers go to a bank or finance company to seek mortgage financing. In some cases, 200,000 in U.S., home buyers rely on seller rather than a financial institution to provide financing because:
• The purchaser may not qualify for a traditional mortgage. • The purchaser may be a relative looking to save on closing fees. • The seller may be interested in having a long-term income stream.
Often seller is pressured into providing financing for purchaser instead of receiving a lump sum. This forces seller to assume role of a mortgage company, worrying about servicing and collecting a monthly income stream. A stream, which may or may not be consistent, depends on payer's ability to meet their monthly obligations.