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If you are in danger of an upcoming foreclosure and youre looking for another way out, knowing what an owner financing contract is absolutely essential. Here well explain exactly what an owner financing contract entails, how you go about getting one, and what the risks are when using an owner financing contract. Owner Financing Contract | What Is It Exactly? An owner financing contract basically puts the responsibility for paying off the remaining amount of the mortgage on the buyer of the home. Many might ask, why would I want to sell my house if Im not going to make any profit? Thats a good point, you wouldnt want to use an owner financing contract if you arent facing a foreclosure. However if youre facing a foreclosure then your other options arent looking very great. If your house undergoes a foreclosure then your credit is going to take a major hit, however if you use an owner financing contract then you can definitely protect your credit score from substantial damage.
