Factoring Purchase Agreement With Seller Financing In Travis
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Factoring involves the cooperation of three parties: A supplier, a factor, and a buyer. The process consists of the following steps: Invoice Issuance: A seller supplies goods or services to buyers and issues invoices with a typical due date of 90 days.
Possible foreclosure. If the buyer stops making payments and won't leave the property, you might need to start the foreclosure process, which could take months or even years.
How Does Seller Financing Work? A bank isn't involved in a seller-financed sale; the buyer and seller make the arrangements themselves. They draw up a promissory note setting out the interest rate, the schedule of payments from buyer to seller, and the consequences should the buyer default on those obligations.
If a buyer defaults, your options fall into two general categories: Mutual Agreement Options: 1) contractual solutions; 2) negotiation; 3) mediation. Dispute Resolution Options: 4) arbitration; 5) small claims court, and 6) litigation in the superior courts.
In CA, we recommend putting it verbatim in paragragh 3. E (additional financing terms). We put in on our pre-approval letter. Include it in your agent cover letter.
