Tell me about land contracts

[Lyndsey Keller]

Can someone give me a crash course on land contracts? We are trying to sell a house and EVERYONE interested is wanting a land contract. I understand we would essentially be the "bank" they would make payments to us. However, if a real bank won't loan them money, why should we? Definitely would want to do a credit check, right?

We want to get rid of the mortgage payment on this house. A month ago we were going to start renting it, but quickly realized that it would NOT follow the 50% rule. Wouldn't a land contract essentially be like rent, except they will "own" the house and therefore have to pay for all maintenance?