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Updated about 12 hours ago on . Most recent reply
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Land Contract/ Seller Financed Question
Hey BP community. Recently I have saw an influx of seller financed opportunities near me. With low entry points, they have peaked my interest. However I am a bit nervous to move foward with one, I don't feel that I have enough information on the subject. I contacted a seller, he stated that he typically does them under a land contract. The question(s) being, who sets up the contract? Is that something I would hire an attorney to do, is it much simpler, and I'm overthinking it? The deed stays in the sellers name until the full, agreed upon, about is paid correct? During the term of the contract, are the taxes the sellers responsibility, and should be factored into the payment? Or buyers responsibility? Some research online recommended the use of a 3rd party escrow service? If the property stays in the sellers name, would I be able to refinance out of the contract after improvements have been made?
Also, I see that setting it up as a private mortgage is an option as well? This I would assume for certain is something an attorney would have to set up?
No rush or hurry, just see enough of these listings to peak my interest. Any reply's are great. Thanks!
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Quote from @Skyler Shively:
Hey BP community. Recently I have saw an influx of seller financed opportunities near me. With low entry points, they have peaked my interest. However I am a bit nervous to move foward with one, I don't feel that I have enough information on the subject. I contacted a seller, he stated that he typically does them under a land contract. The question(s) being, who sets up the contract? Is that something I would hire an attorney to do, is it much simpler, and I'm overthinking it? The deed stays in the sellers name until the full, agreed upon, about is paid correct? During the term of the contract, are the taxes the sellers responsibility, and should be factored into the payment? Or buyers responsibility? Some research online recommended the use of a 3rd party escrow service? If the property stays in the sellers name, would I be able to refinance out of the contract after improvements have been made?
Also, I see that setting it up as a private mortgage is an option as well? This I would assume for certain is something an attorney would have to set up?
No rush or hurry, just see enough of these listings to peak my interest. Any reply's are great. Thanks!
Yes, lots of questions that need to be answered by an attorney in your area. One you don't know to ask is "Can a seller on land contract still encumber the property with a loan or incur a lien". Answer is "yes". That means if the seller gets sued or has a tax lien or a medical lien, you join him in trying to sort things out. Technically he can borrow money against the property.
And, if he is not honest, he can sell the property multiple times.
Since the deed isn't recorded, no one would know.