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Spring Arbor : Real Estate Advice

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Activity 7
Wed Feb 8, 2012
Pam Bava answered:
You have gotten great answers, I agree with asking your tax professional. Because I depends who is actually paying the taxes.

Good luck
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Mon Oct 26, 2009
Don Tepper answered:
They're not.

In some areas, the concept is unfamiliar. For instance, I understand that in Michigan land contracts are pretty common. But in other areas of the country, people are more familiar with lease-options or lease-purchases. They're not precisely the same as land contracts, but they serve the same basic function for both buyer and seller.

However, as with lease-options, lease-purchases, wrap mortgages, contract for deed, and similar techniques, very few will be listed on the MLS. You (or your agent) often have to go out and make it happen. I've posted repeatedly on how to find lease-options; the same techniques are used to find (or develop) land contracts.

As for the dreaded "due on sale clause" mentioned by Cicely, it's true that any of the techniques I mentioned can trigger the due on sale clause. However, for a number of reasons it's unlikely to. The main reason is that, right now, lenders are delighted if someone's paying their mortgage on time. The last thing they need or want is to foreclose on a performing mortgage. There are also ways to minimize your risks with land contracts. Or you can eliminate the risk by using a land trust, properly structured. See http://www.landtrust.net for more information on land trusts.

Hope that helps.
... more
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Tue Sep 22, 2009
Jenny Day answered:
A lease with option is another good thought besides the land contract. An agent's fees are 9 times out of 10 times paid for by the seller of the property that you are leasing or getting on land contract. ... more
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Tue Jul 14, 2009
Linda Phillips answered:
Thanks Jason, but those all seemed to be properties for sale, except the one, which is basically student housing for the University. But thanks for trying.


Still looking.
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Thu Mar 26, 2009
Jeremy Sulak answered:
Linda,

I'm glad you are here! You will find plenty of good Realtors who are happy to provide guidance for you at no charge.

Most land contracts would be noted in the listing, if an owner offers a land contract that typically means they own that property free and clear. If the owner has a mortgage on that property, the mortgage would include a due on sale clause. Meaning he does not have the right to resell that property to anyone without paying off the existing mortgage.

Typically land contracts were more advantageous to the seller than the buyer, however with the current credit crunch, there are alot of people out there who do have money and do pay bills that connot get a convential loan. Making land contract a hot commodity, with this being your only option as you put it, you are using a land contract to the buyer advantage.

The nice thing about land contracts is the terms are written by the seller, and have to be agreed upon by you, the buyer. So like Norm said you can write the contract to work for both of you, to help both of you rather than be a burden or stress in your life.

I admire your enthusiasm in trying to tackle this endeavor yourself, however finding the right land contract for you might be less of a pain if you consult with a Realtor. You can choose to interview 2 or 3 and see if there is one that you like, that you will enjoy having them work in your best interest. I work with my buyers free of charge, and I would expect nothing less of the agent you choose to work with.

I hope this was of some assistance, if you do choose to look on your own dont be affraid to contact a real estate attorney to make sure your rights are protected.

If you do have anymore questions you know where to find me, on trulia, or drop me a line on www.myhomemichigan.com

Best of Luck

Jeremy Sulak
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Fri Jun 6, 2008
Angelo J D'Agostino answered:
Please contact me through my web site. I will be my VERY BEST to help you www.askangeloj.com I am a licensed realtor with The Michigan Group out of the Brighton area, but live in Jackson. ... more
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