Performing Land Contract assignment

[Stephen D.]

I have received an unconventional proposal from a seller.  The seller wants to assign their performing land contract at 7.8% for the balance currently outstanding on the loan.  I'm not sure where to start with this seller and what questions to ask.  Any help on what things to do and what to look-out for would be extremely helpful.  

Thanks

[Scott Arpan]

Stephen,

Call a local contract buyer to get an evaluation of the note’s worth. To start, they will ask you about the vendee’s credit, how you will prove payments were made on time, the type and condition of the property. They will need to know the sale and contract terms and if there is a balloon payment, what is the vendee’s plan to pay it off. Based on those answers there will be many more specific questions. Some will want confirmation the note is not subject to Dodd-Frank or violates RESPA.

Chances are, even with a good interest rate the paper would be worth in the 50 to 80 cent range depending on the details.

I have seen Marc Faulkner post at times in BP. He is in Michigan and would probably be your best resource.

Good Luck