- sharonajmbMember@sharonajmbJoin Date: 2008Post Count: 1
We are looking for Vendor Finance on a Home in WA. Due to current financial market and fact that I have left work for a short period to have a baby, conventional Banks will be hard to obtain finance from; however – this is only TEMPORARY – Looking for Vendor to finance sale of property for a two year period to work as follows; 1) An upfront initial deposit (negotiable depending on how much ywe can afford). We are eligable for FHOG. We would provide you with proof of income etc….. 2) Property would be transferred into our name (as a normal settlement) 3) At settlement You would lodge a Mortgage on the property (just like a bank would do) 4) Mortgage would be for approx 24 months from settlement date. 5) We would pay monthly repayments to you at interest rate of 10% for the duration of mortgage. 6) After Mortgage time is up (or before) we would get finance from a normal lending institution to pay out your mortgage to you. 7) If we do not re-finance within the specified time and pay out the mortgage to you; you would reserve the right to foreclose on the property (unless other agreement or extension entered into). After the mortgage to the vendor is up the buyer would be in the position to get a loan from a normal lending institution as they can show that they have been paying mortgage and property price would have gone up so there is equity in the property. Any of the terms specified above can be negotiated.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Not sure if you have missed the concept of VF or whether you are being a little over optimistic.
Firstly very unlikely you will find any Vendor transfer the property into your name on the possession date (especially if he has a mortgage on the property which of course he could not repay) and then take a registered mortgage on your title.
More likely that he will remain as the Title holder until such time in the future when you can obtain finance and the property transfers into your name.
In WA he/she will be required to hold a Credit License and if it is there only sale will want to recoup any costs from you for this.