That's really a question for a real estate attorney, but a quick google search says 21% is the max rate.
To my knowledge, the guidelines that apply to banks/mortgage lenders as to what they are allowed to legally charge for a mortgage differ from what an individual may charge in an agreement between themselves and another individual.
If you want real peace of mind, talk to an attorney. If you don't want to spend money to consult with a lawyer, then tell this dude he's mistaken. I wouldn't spend any money on legal services though. He's probably just grasping for straws upset because he has a 12.5% rate even though that was of his own doing.
If in 9 years he hasn't gotten his credit act together to where he can get a mortgage to pay off the land contract then that's not your fault. It's his.
There really is no such thing as an average HOA fee, these vary widely between HOA's based on what they are actually covering, the number of homeowners, the amenities provided etc etc. You're going to have to evaluate each one individually.... more