Seller Financing Barnburner

Whether representing sellers or buyers, there are multiple ways an expert seller financing Realtor protects their client. One good example of this was during the course of my negotiation for a seller client on the sale of their Oregon home with acreage.

During negotiations, I ensured my seller was named as a loss payee for purposes of insurance. Now such a term may seem mundane, even boring. Yet you’re about to find out why it’s important. That’s because a few months after we closed that sale on behalf of our seller client, I was informed that a barn on the property had been severely damaged by fire. The loss was considerable, approaching the six figure range.

Fire damage is always concerning, but my early recommendation to our seller that we include such a mundane term in our sales agreement protected him. That’s because the powerful lever of being named a loss payee armed our seller with the ability to review barn repair bids, among other things, before agreeing to release the insurance company’s payment to the new owner.

As a result, what could have been an unfortunate story had a very happy ending, with the insurance company making out their payment check to both the new owner and our seller. This protection required our seller client’s agreement to the release of funds by co-signing the back of the insurance check in order for the new owner to receive payment.

Had our seller client not been named a loss payee, there was no requirement for repair bids from reputable, licensed and bonded firms. There also wouldn’t have been a clear understanding that insurance funds be used for barn repair to protect the property’s value. If the new owner had frittered away that insurance check and our seller ever needed to foreclose, the property’s remaining value could be considerably less, accompanied by increased financial exposure to our seller client.

Thinking about buyer or selling with Oregon seller financing? Make sure you have an advocate in your corner. Contact expert seller financing Realtor Roy Widing with Certified Realty for a free consultation today. Call or text Roy at (971) 258-4822 or email Roy@CertifiedRealty.com