Buying a House on Land Contract - Good? Bad? Ugly? Any experiences you want to share (1 Viewer)

[JasenP]

I am looking to buy a house on a land contract are there any other disadvantages other than no equity?

I am a lifetime renter so this is all very new to me.

Any input (including cautionary tales) are welcome!

 

[ken thompson]

If you could be more specific with your question I could be more helpful. I'm assuming that you mean you would be buying a house and the seller would hold the mortgage ie. you would be making paymnets to them and not a bank or other financial institution. Usually the rates an individual would want to charge would be much higher than you could get otherwise. Also, if the seller (your mortgage holder) has a loan on the house you need some sort of vehicle that will ensure he makes those payments propertly, otherwise the house could be foreclosed on and you would be out your money even if you made all of your payments on time. If you decide to go through with this purchase make sure you close with a title company. You will want to be sure there are no liens on the property that could come up and bite you down the road.

 

[ken thompson]

I also found this http://www.agentsonline.net/forum/Fo...ML/000196.html It gives a some info on your question.

 

[JasenP]

Ken -

Thanks for the info.

Basically a good friend of mine works for his Father who buys and restores properties. He mentioned that he sells many on a Land Contract and that I should get out of the tiny apartment that my SO and I live in and get a house.

My credit is horrible (debts ignored for years horrible) and getting a house wouldn't be possible going through the preferred channels of purchase.

Once I am assured that my current position is stable (my company was recently acquired by another) I would like to purchase a house and tackle those debts, get married, etc.. etc..

 

[wallstreet]

The main advantage often times with a land contract is the terms can be more creative in helping you to get into the home without having to jump through all the red tape with the verifications and credit requirements of obtaining a mortgage. The interest rates range and the credit requirements are often much more relaxed. We would love to assist you and feel free to check us out on the web at www.wallstreetloancenter.com

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