Seller Finance is the oldest version of financing. A seller finance transaction is a non-institutional loan in a real estate sale between the buyer and seller where the seller becomes the lender and the seller’s security is the property. The seller extends credit for the purchase of a property to the buyer and agrees to accept buyer payments over a period and a set of terms defined in the agreement/note.

This approach provides buyers with an alternative financing option that does not involve a banking institution or a qualification process that comes with a conventional loan. Though Seller Financing is one of the tried and true methods of facilitating the sale of property, not all sellers are comfortable with the required servicing aspect of the transaction, and may not have the familiarity with how to handle, or may not want to deal with, the monthly servicing (or back office tasks) that will be required to manage the loan such as:

  • If the agreement entails a series of payments, someone will need to keep track of the payments received, apply late fees (if necessary), separate principal and interest and more
  • If additional payments are received, the funds will need to be calculated and applied correctly
  • Someone will need to ensure the property taxes are paid
  • Advanced computerized technology
  • Specialized assistance to investors
  • Toll-free customer service
  • 24/7 online and televoice access
  • IRS 1098 and 1099 preparation and reporting
  • Document custodian
  • Maintain optional property taxes and insurance for reserve accounts
  • Multiple payment and disbursement options

LoanCare’s Seller Finance solutions, including both Full Subservicing and Component Servicing, allow the seller to tailor a program that meets their individual needs.




LoanCare’s Seller Finance Subservicing offering gives loan subservicing and administrative services in real estate transactions that do not include an institutional investor.

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Component Servicing

Component Servicing

LoanCare’s Seller Finance Component Servicing offering gives sellers the ability to choose from a menu of services to create a custom servicing program.

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