Seller Financing in Italy – Buy without Mortgage
Buy a house in Italy without a mortgage.
Owner financing is a creative financing kind of purchase where the buyer obtains financing directly from the seller of that property. It is also known as seller financing, bond for title, or a longer kind of “rent to buy”.
This is a classic creative method of purchase known, especially in the USA, the buyer uses a contract as the purchase tool, but usually obtain the title to the property only when he has paid the last installment of the agreement. Practically, he pays the equity in installments over time, usually various years, in the meanwhile, the buyer will act as the owner of that property, getting all the benefits, but also the expenses, and gaining appreciated equity above the value of the property that is growing from the time of the agreement.
This financing tool often occurs if the buyer can’t obtain a normal mortgage or home loan for whatever reason.
Being an unconventional purchase method could be often associated with specific legal issues and concerns, such as higher down payments, compared to the ordinary mortgage loans; delayed transfer of the deed, the home is not transferred until the all of the payments are made.
A crucial specific legal concern is the Negotiation between the parties.
Since no institutional lenders are involved, the parties will have to negotiate all the financing terms, clauses and conditions on their own, doing their best to be fair and equal. While this can lead to a more tailored finance arrangement, both parties need to be sure that their interests are correctly represented and protected in the arrangement.
It is already a hard task for parties speaking the same language, and it is even more complex for foreign buyers.