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Seller Financing Cabo Property For Sale

Many buyers or potential investors do not have the liquidity or the ability to qualify for a traditional or equity loan because of their status as self employed, or due to lack of documentation confirming actual corporate assets vs personal income. For these, as well as other investors with the money to spend but lack of solid credit history, Seller Financing (Seller Carryback) is a viable and ever-growing acceptable option.

A typical private contract of this nature will include your name on the title, with the seller’s name as lien holder. Down payment percentage, length of contract, and terms of amortization, interest, and balloon payment will all be worked out through the Offer to Acquire process. The contract itself is written by Real Estate Attorneys who legally support and represent both parties equally.

Financing through well known banking institutions became available in 2005. Over the course of 6 years, closing departments in a variety of escrow and brokerage offices became experts at streamlining processes and foreign investment requirements within Mexico’s legal structure.

The economic crisis in the USA truly affected the Mexican foreign investor market only once the banks in the USA began tightening their own loan standards and requirements. This tightening of the belt eventually seeped south of the border, resulting in closure of international branches here in Mexico in 2011.

Scotia Bank, whose rates were quite high, and whose processes were difficult to maneuver through in a timely fashion due to their lack of infrastructure was suddenly overwhelmed with loan requests as they became the ONLY foreign investment bank in the region.

Scotia bank, however, did not have the resources, staff or the necessary process structured to keep up with the increased new demand, and eventually closed their branches here as they now redefine and streamline their own foreign investment and escrow offices. Until they feel their internal infrastructure and processes are equal to the demands, financing for foreigners is not available. Peso loans are available, but rates will be 12+% just as they are for Mexican Nationals.

These restrictions resulted in a need for investors who desired to take advantage of the tremendous price reductions in a resort location such as Baja Sur, to pay cash for their purchase here through bridge loans or equity loans back home. It is, once again, if not just momentarily, a CASH environment.

The closing Notario has the final say in all legal transactions, but having all terms and conditions done by local legal representatives who understand the laws of the Municipality is a sure first step in obtaining your dream home that otherwise may not have been available to you.

Having your agent negotiate on your behalf in order to protect your buyer rights and interests is also a key to obtaining Seller Financing that meets your unique criteria.

Seller Financing is currently available on these listings.
Terms will vary