I was wondering if you guys also deal with Land Contracts? To help rebuild credit? I was searcing on the internet and this is were it brought me.

Asked by Toni, Grand Haven, MI Mon Dec 26, 2011

looking to get into a land contract home

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4
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue Dec 27, 2011
Most private sellers that carry back financing do not report to the credit bureau so that will not halp build credit, but it will put your future at risk. You are assuming the seller is in a better position than you are, often a very big mistake. Usually the reason a buyer seeks owner provided financing is because the buyer does not qualify for a traditional loan. Underwriting guidelines protect the buyer more than they do the lender. If you try to work around not qualifying for a traditional mortgage the risk on your side increases dramatically. Search around and you will find plenty of “buyers” that tried owner financing or lease to own that did not work out so well. The underlying assumption is the seller will also be able to perform someday down the road. That is a very big what if, people die, get divorced, go belly up, lots of bad things could happen to the seller before you are ready. See the other answers about lower down payments. I hope my observations in the link below protect you, good luck,
0 votes
Brenda Harris, Agent, Muskegon, MI
Tue Dec 27, 2011
There are several homes for sale that "sellers" may consider a land contract, this usually happens if the home has been for sale for several months and accepting a land contract offer may be the only option of getting the home sold. Working with your Realtor it is always worth have them ask the seller if they would consider accepting one. As a buyer you will be expected to provide a copy of your credit report to the seller, so if your credit is not in good standings the seller may not want to take a risk of accepting the LC. Also the seller will usually want at least 10% down of a purchase price, interest rate will be determined, payoff in 3 -5 years. Can this be a win/win for both parties? It can be. But purchasing a home on land contract just to build your credit may not be the best choice, but every potential client has a their own situations and everything can and will be considered in accepting a land contract.
0 votes
Sonya Loose, Agent, Beaverton, MI
Mon Dec 26, 2011
Hi Toni, if you are looking for listings available on land contract visit http://www.roselandco.com as they offer all of their foreclosure listings on land contract. Not sure how many are in your area of Grand Haven but it's worth a try.
Good luck!
0 votes
Roland Vinya…, Agent, Sprakers, NY
Mon Dec 26, 2011
Land Contracts here in NY are not well-liked by attorneys and they are not common, which they are in some other states.The concerns hinge around several "What if''s". What if one party dies? What if you fail to pay (assuming the owner has a mortgage). And so on. They are used mostly to skirt around a mortgage that the owner has when the buyer cannot get sufficient money to allow them to pay it out and meet their other needs. Other times, it is used when short-term needs of the buyer need to be considered. He has a home to sell but wants to buy first, he has credit problems and needs time to get them repaired, he has no business track record and it's a commercial purchase.... Foreclosure is about as difficult as it is for a conventional mortgage, so the owner stands little to gain there. With so little incentive offered by a land contract, you may expect to pay somewhere else - higher price, higher rate of interest or somewhere. Maybe you will be lucky and avoid this.

As an agent, I have no problems with them. I get paid either way. I've done a few.
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