Lansing, MI Mortgage

Land Contracts – Part V – For Buyers This Time

Buying on Land Contract?

Because the $8000 first time homebuyer tax credit is available to you and because you may have damaged credit – you may be considering buying a home using a Land Contract. The following is meant to be helpful but is not an exhaustive list of things to consider when buying a home using a Land Contract. It is always important to get legal advice from an attorney.

That said, read these paragraphs as a good start to getting your mind around how the Land Contract works…

Land Contracts – Part IV – The Due on Sale Clause – a Black Swan?

Black Swans are a fictional bird that everyone talks about but no one has ever seen. Unlike a Black Swan, Due on Sale Clauses have been exercised by banks in the past. It is however, extremely rare – thus I write this post.

A due on sale clause is a paragraph written into a mortgage giving the lending bank the right to accelerate the payoff (foreclose) on a home if the mortgage holder (homeowner) sells the home. Since a land contract is a sale – a transfer of ownership that will hold up in court – the bank would have the right to “call” the loan if the mortgage holder sold in this way. If you have a mortgage, this paragraph is likely in it. This is the plain truth…

Land Contracts – Part III – Horror Stories!!

The fact is that some sellers who have used land contracts have had horrible experiences and you need to be prepared that some negative things could happen.

What is the worst? Since you are going to stay in control to keep the home insurance and taxes paid, you are not in jeopardy of losing the home to a fire or that the property tax authority will take over your home because of an unpaid bill. That would be really bad. YOUR buyers have the ability to pay you slow, sometimes nothing for a while. But you will keep your payments up and therefore, your interests in the home are protected…

Land Contracts – Part II

The sellers that do the best selling their home using a Land Contract, approach the process with a profit motive and a service purpose. Doing this in the right way and for the right reason will cause you to make money from the sale of your home, but also help another family in the process. Keep these both in view and you will likely do well. Again, this list is meant to be helpful. It would be advisable for you to consult an attorney as well.

Here are some helpful tips to remember…

Land Contracts – Part I

Many home sellers are using Land Contracts in this market to sell their home. This series of posts should help you make a good decision about whether its right for you.

The appeal of this type of sale are multifaceted, here is a non- exhaustive list of benefits to you as the seller in a Land Contract scenario…