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Seller financing is also known as 'creative financing' or 'owner financing'. It is typically used in real estate transactions. Seller financing is when the seller of the property offers financing through them, instead of through traditional means such as a mortgage or other loan. This may be used if the interested buyer is unable to acquire traditional funding for the property or if the seller has been struggling to get their house to sell.
In seller financing, the seller will provide financing means to the buyer. This transaction should be overseen by another party such as a lawyer. Legal documentation should be drafted, including a detailed contract outlining the real estate transaction with cost, monthly payments, and more information. This will ensure both parties are protected in the financial transaction.
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