Hello. I am thinking about offering a friend a land contract. I have no idea how to do it or what to offer.He has a existing mortgage on it that is not very much
1.Can I take over his mortgage at his rates? If I can and house is worth way more than owned example(mortgage remaining is 30k house is worth 150k) could I take the 30k loan over and then pay the 120k on the side?
2. How do terms usually work? How much does someone usually put down 10%? And then what are usual terms as far as repayment? 3. Who owns the title?
If anyone has any experience with land contracts please feel free to add. I would like to offer but I also want to make sure we both are taken care of and everything is legit. My reasoni g for wanting a land contract is for a lower down payment, cutting out realtor, and hopefully saving some intrest.
I don’t know if it matters or not but it’s a duplex
I suggested to contact a local title lawyer who knows those type of transactions. Depending on how to structure, you take title on the house at the closing or you take the title when you paid in full at the end of installment sales. You can generally create terms work for both of you and your friend.