Bd, Home Buyer in 48237

Should I Sell My House on Land Contract?

Asked by Bd, 48237 Thu Jan 31, 2008

Hi. I live in Oak Park, MI (48237). My house is currently listed for $135,000 which is what I owe on the house. I love my house but I want to sell and move to a better neighborhood with better schools. The schools in Oak park are terrible. A friend of mine would like to purchase my house on land contract. I have found a house in Beverly Hills, MI (48025) that I would like to buy. The house is smaller than my current home, is in ove in condition and has an execllent school system. If I purchased the house in Beverly Hills, MI, my monthly expenses would increase approx. $350 a month which is less than if I put my son in private school, plus I get to write off the property taxes. I feel that if I don't sell my house now on land contract, that I may have to wait approx. 5 years before I will be able to sell my house for what I owe on it. My question is should I go ahead and sell my house on land contract or should I stay put and pay for private school for my son?

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Keith Sorem, Agent, Glendale, CA
Fri Feb 1, 2008
I would suggest a couple of convesations so you know your options:
1. Discuss your ideas with a Realtor and find out your home's Fair Market Value (FMV). Also have them provide you with an Estimate of Seller's Net Proceeds so you know your situation.
2. Discuss the option of a lease to own, or straight lease with the Realtor and a CPA (for tax consequences).
3. You could also consider leasing your current home and renting a primary residence temporarily.
4. I don't know your location, it might be possible to obtain a waiver from the school district in Beverly Hills so you could have your child attend. Not always done, but it never hurts to ask, particularly if the district knew that you were trying to move into the area.

Good luck!
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James Gordon…, Agent, Hamilton, OH
Fri Feb 1, 2008
You need to be careful with a land contract. I would recommend having your friend talk to a mortgage professional and get preapproved with stipulations. Your friend would work on improving their credit over a one year period and the could refinance to buy out the land contract. Yes it would be a refi because you are the bank and note holder on a land contract. Remember before you do this you are making a loan to someone that no company that makes money doing loans will touch.
Here is something that one of my investor clients is going through right now. If the buyer/tenant does not pay it is not an eviction but a forclosure because you have given an equitable interest in the property to the other person.
This is not legal advise, just make sure if you decide to this you do it with your eyes open and not just to move.
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