In a down market, financing is often tight for buyers. Even creditworthy borrowers get rejected because of rigid underwriting. In order to facilitate a sale, consider financing the deal yourself -- called “seller financing.” By financing the sale, you may sell your home sooner and enjoy a financial return for the effort.
How does seller financing work? With seller financing, the seller acts as the lender, but rather than actually loaning cash, he or she extends credit against the purchase price of the home. The buyer signs a promissory note and trust deed in the seller's name. If there's an outstanding mortgage, the lender must agree to the deal. There are numerous variations, including equity sharing, lease options, financing only a second mortgage, and more.
You'll need to check with a real estate attorney or other professionals proficient in seller financing contracts to learn more and to determine if you can handle the risk.