Home Buying in Fort Wayne>Question Details

Hopeful Home…, Renter in Fort Wayne, IN

What are the chances of purchasing a nice home on a land contract?

Asked by Hopeful Homebuyer, Fort Wayne, IN Fri Jan 6, 2012

My husband's job is technically a salaried job for the first two years, but in his "business contract" it states he draws on commission because after the first two years, he'll pay back one year's worth of the salary. He's in insurance, and also a USMC veteran drawing disability for various service-related injuries and health developments. Even WITHOUT the salaried job, we'd have enough for a mortgage without going over 25% of our total income. My question is, are there many people willing to do a legal land contract? I know the housing market isn't too seller-friendly, so would offering a L/C be?

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I have purchased two homes on land contract, so I can speak first hand to the benefits of a carefully crafted land contract. Land contract are not for everyone and many sellers are not interested in remaining tied to a property that they're trying to sell. A good land contract is a win-win for both parties.

We have bought and sold a handful of homes on land contract in 2011. Because a land contract ties the buyer and seller together financially for a negotiated number of years, land contracts tend to be more intricate than a regular purchase agreement. For example, what happens if the seller declares bankruptcy and stopped making their mortgage payments? On multiple occasions in 2011 my company retained an attorney to review the negotiated land contract to ensure that our client's legal and financial interests were protected.

I would be happy to meet with you, learn more about the goals your family has and develop a plan to help you achieve them. Best wishes to you in your search!

Chris Parker
Realtor & Auction Manager
Real Living Ness Bros
(26O) 76O-4589
ChrisParker@NessBros.com
0 votes Thank Flag Link Sat Jan 7, 2012
There are a lot of good buys out there right now, and many sellers are displaying flexibility not only in price, but in alternative financing. In Allen County, I see 37 listings that come up as willing to accept land contracts (not a very large piece of the overall market). Of course, prices are all over. We would need to narrow down a price point, geographic location, and your specification requirements (# bedrooms, baths, etc).

Have you spoken to a mortgage lender yet? If not, you really should do so, even if you don't plan to get a mortgage right now. A competent mortgage agent will be able to help you plan for eventually rolling into a mortgage and how soon you might be able to do so. I know several good agents locally if you are not already working with someone. Just let me know.

If you are interested in seeing some listings or getting more information on mortgage lenders, don't hesitate to call me at 260-579-1516 or email me at mike@mikearchbold.com.
0 votes Thank Flag Link Fri Jan 6, 2012
Send me a private message. I have a lender friend that can work miracles. RhondaSueBandor@aol.com
0 votes Thank Flag Link Fri Jan 6, 2012
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