There have always been sellers that will consider holding a note for a prospective buyer. Generally when they are slightly desperate to sell and move on, with no traditional buyers interested in their home.
It's happening already. See the story below:
Home Sellers Are Financing Buyers With Poor Credit - San Francisco Chronicle
Sellers need to be extremely careful. Contracts need to be written with expertise. My thoughts are there will be viable options for seller backed financing in the next few years but the reason for the foreclosure really needs to be investigated. And, the most popular scenarios aren't really the types that I would want to hold paper on.
But, if we get an influx of the Shadow Inventory all of a sudden, there will be plenty of somewhat desperate traditional sellers that want to sell and they will be competing against huge numbers of available homes.
Better start thinking now about how holding paper on your home for a buyer will work for you. And, have a Realtor and lender in your back pocket to help you out with credit reports and contracts! And, an attorney?That is a really, really good idea too!
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