Your question has been answered all ready but a few things to consider if you are the seller.
If you enter a Land Contract with someone and they stop paying you the mortgage then your only option is foreclosure. This can be a long and expensive process for the seller. Another option if you are the seller, is doing a lease option. You can keep the terms the same as a Land Contract without the risk of a foreclosure. If the tenant does not pay rent, all you have to do is evict. This is a much simpler and less expensive method of removing a non paying tenant. Please call me with any questions at 262-658-1400
so if after two years of a land contract as stated above, their final purchase price they would need to get from the bank would be $66,000?
what happens when they stop making payments or decide not to buy it after two years? are they entitled to any portion of their payments back if they leave the deal?
thank you again!
There are many different versions and details that can or would need to be worked out, but the main difference is that the land contract goal is to purchase the home.
Please feel free to contact me to discuss this in more detail or any other questions you may have.