Definition - What does Owner Financing mean?
Owner financing is when the person that owns the property or asset being sold offers the buyer a loan to cover the payments rather than the borrower seeking a loan from a financial institution. Owner financing is dictated by the same laws as regular financing. Namely, the amount must be clearly stated as well as the interest due and payable, the dates expected for payments to be made must be listed, and a final buyout figure named.
Justipedia explains Owner Financing
Owner financing is offered in cases where the potential buyer does not have credit worthy enough to borrow from a bank and where the asset being sold is fully owned by the seller. This is also referred to as seller financing. It is mainly seen in smaller purchase items, such as home furnishings, but can also be seen on homes and cars.
What Are the Legal Rights of Customers During Debt Collection?