How to Evaluate Land Contract Homes for Sale?
When you want to purchase a house but don’t want to get a mortgage from a bank you can enter a land contract. Though risky, it can very profitable, particularly for the seller. The risk exists because it is the seller who effectively becomes a lender since he is privately negotiating the terms with the buyer. It sometimes may happen that a buyer’s credit history prevents him from obtaining a mortgage. That’s when a land contract helps him to get his home. How it works Land contract homes for sale by owners may also be known as “Trust Deeds”, “Contract for Deed” or “Privately Held Mortgages.” This allows: An owner to sell his home directly to the buyer Setting up a flexible and agreeable payment schedule Those with poor credit to buy a home. Repayment conditions Though the system may be flexible obviously there are conditions to follow. The repayment conditions would naturally differ from a traditional mortgage and may require the seller to renegotiate