Using land contracts

[Account Closed]

Good afternoon. I wanted to know if anyone has used land contracts to sell properties. And if Pennsylvania allows the use of land contracts. I was looking at a gentleman name Ron Legrand on YouTube and he seems to swear by them. 

[Dan Deppen]

If you are originating the CFPB rules are the same for a land contract or mortgage, so I don't see any benefit to creating a land contract. I buy existing land contracts all the time but I wouldn't create one in any state. If I was going to create one PA would be the very last state I would do it in. 

I ended up with one of the Harbour originated land contracts. The AG wanted me to convert it to a mortgage, which I was fine with. But the borrower wouldn't cooperate, things dragged out, and the AG started making vague threats. Eventually the borrower signed the cancellation and new mortgage, with a big reduction in his loan balance, and we got through it. But it was like dealing with the mafia.