Lake Nona Golf and Country ClubWith the situation in the mortgage market, many homeowners are stuck in their homes and unable to sell them. I am not talking about homeowners that are under water, I am talking about homeowners that own their homes free and clear.  I am talking about homes that are in perfect condition and show well, I am talking about homes that are priced fairly.Now you might think: “What is the problem?” The problem is that these homes are located in vacation style subdivisions that are mainly occupied with people that are enjoying our wonderful Florida sun, golf and fun.  These subdivisions are not the type of subdivisions that people like to live in year round, but they are fun to vacation in. Most of the properties in these subdivisions belong to absentee owners, either foreign nationals or northerners and most of the interested buyers are second home buyers and foreign nationals.  Today it is almost impossible for foreign nationals to get loans in the US and it is difficult for local second home buyers to obtain mortgage, as the mortgage industry is now over regulated.

Where there is a will there is a way.

These sellers are not giving up and allowing the lenders to control their lives, they found a way to sell their homes and take the lenders out of the equation. They are now offering owner financing, many sellers of homes that I am working with now are willing to consider owner financing of their properties. They are offering buyers that bring 40% down payment a private mortgage of 60%, with interest rates running about 6%. These loans amortizes over 15 to 30 years and balloons after 5 years. By financing the sale themselves they are now able to move on, they will receive enough funds with the down payment to move on and the monthly payments help with their living expenses until the balloon payment kicks in. This is a win, win situation as now the interested buyers can buy their dream home in a subdivision that suits their needs and the sellers (often elderly) can move on with their lives.

I will not allow them to control my life.

After working for 11 years in the Real estate industry, I have heard many stories from seasoned Realtors about the high interest rates in the ‘80s, the saving and loan collapse and so on. They talk about how the market found ways to work around these problems, which the mortgage industry created. Well we are now in similar shoes today and this seems to be one of the markets answers. In other words, the sellers are saying: “I will not allow the mortgage companies control my life!”