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Nissan Patrol Gu 2000 3.0ltr
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Discussion Starter · #1 ·
Anybody had any good or bad dealings or heard of any loop holes to vendor finance?

We are selling a house at the moment and keep having requests to be put in a vendor finance situation. We are learning more and more about it but any experiences or what to watch out for would be great.

cheers
Justin
 

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KICKEN BACK IN THE BUSH
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Best bet would be to seek proper legal advice
Then and only then would you be comfortable with this situation
 

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Discussion Starter · #3 ·
def agree and seeking some tommorrow just thought of maybe the trusty old patrol4x4.com would provide me answers like it has done to my patrol lol
 

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Depends if you can handle having the money "trickle" in over the period you finance. Most people can't because they need to pay out existing mortgages and get another house with the remainder so need the full amount at the time of sale.

IF you don't need the full sum and IF you get a decent Buyer who doesn't default then it is no drama's.

IF you get someone who is dodgy or whose circumstances change and can't make repayments then it can be a disaster (not unlike Real Estate wrapping).

The banks/credit societys/mortgage lenders have the dollars, legal expertise and facility to do extensive credit checks prior and also carry the burden of foreclosure if it all goes pear shaped after.

Vendor finance is often seen as an investment because you get the income stream of the Sale Price plus the Interest so can be very profitable if circumstances and risk allow.

Juppa... MQ Mad is right tho... don't even consider it without both Legal and Financial advice and even then I would get two opinions on both
 

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BORDERTREK 4X4 & FABRICATION
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Ask Roachie on here, he worked in bank for 30 odd years.
 

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it all depends. is the house an investment property or are u moving from it and buying another? the trouble with vendor finance is if the buyer for some reason fails to make payments the house is once again back in your possesion. if its an investment and u already make repayments then it wouldnt matter but if u are buying again u could end up being stuck with double repayments. like the other guys said, i would def seek legal advice first. good luck
 

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I did 20 years in the finance industry, and spent the last ten of those doing "securities" which is the legal side of lending documentation. I was a fair way up the chain too, so no newby when it comes to this stuff. I gave it away two years ago.

My advice is for you to wait for a buyer that has their own finance. Since the GFC the banking sector has tightened up their criteria a LOT. A lot of people that could have borrowed money two years ago are now getting knocked back. So the market has reacted tp this, as there are now less buyers out there, particularly in the first home buying sector. My parents are selling their house at the moment and estate agents have told them that the dollar value in the market has reduced due to the finance sector tightening criteria.

If a buyer is in a good financial position then they will be able to get a loan, and not need vendor finance. If they cannot get a loan from a bank, do you want them owing you money?

The other negative aspect of vendor finance is that it reduces your options once the asset is sold. You do not have the option of using the lump sum if funds are repayed in installments.

Be patient is my advice. The right buyer will come along.
 
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