I'm so glad this video has been useful for so many people! Be sure to subscribe so you don't miss my best mortgage tips and you're welcome to reach out to me directly for more information anytime here: www.balanceprocess.com/buying-a-home-on-land-contract/
so legit, I ran into all the issues you were talking about in the beginning of the video! Key is definitely knowing your options and finding the right lender!
This was hugely informative!! I had some misconceptions about what a land contract was for and maybe I'm looking for something more like seller financing. I thought they were one in the same? My unique situation and hope was that I could purchase a home on land contract with little down, buying tine to repair credit. I am a software engineer with a decent salary but am just starting this specific path and my salary is at the lower junior level reflecting experience. It will only increase is the point. I had a 2 year lapse in employment trying to get my own company off of the ground and failed so my credit is low 500s. The unique part continues....we have 4 large dogs and some cats. my wife is a vet tech and we are both animal lovers. Anyway thanks for this video I went ahead and subbed up and I'm going to try to get some learning on this stuff;)
Hi there, I wrote down everything you said, I've been renting a house for about 4 years with my boyfriend and finally they've decided they are not renting anymore, I was thinking of getting a land contract home as a permanent home( fix it up myself) was wondering is that a good option for first time "owning" a home or not? I don't want to get stuck renting for the rest of my life 👍😀 p.s. I'm in Michigan p.s.s both have not great credit. Appreciate a response 😊
Hey Ashley. Yes, land contract is a great way to go if traditional financing is not an option. It is truly "owning" but instead of using a bank for financing, the seller provides the financing. You're welcome to reach out to me anytime here: www.balanceprocess.com/contact/ All the best!
It depends on how the title company records it. If the land contract is recorded properly, the tax bill will be in the buyers (new owner's) name. Same goes for depreciation I believe, but you'd need to check with a CPA to confirm.
Question: I’m looking at a seller finance deal where it’s a duplex $340k with 10% down 30 year amortized with a 5 year balloon. When I go to refinance year 4 or 5 does that pay off the seller completely? Confused how how they would get paid there full money back through the refinance process
Yes. The lender will contact the land contract holder to obtain a payoff. It would be paid in full. Make sure you use a title company when you close with the seller so that everything is recorded properly.
Well it might be a little too late. Have a friend who house is foreclosue due to back taxes Seller is willing to let him buy back the house in a land contract. Was wondering, who will pay the back taxes? Him or the Seller. Or can the back taxes be added on to the contract?
If the friend's house is in foreclosure because of back taxes, then the taxes need to be paid or friend will lose the house. I'm not sure who you're referring to as the seller.
In a land contract, you aren't the owner until you satisfy the terms of the contract. So if your contract states a purchase price for 250k for 5 years. You aren't the official owner of the property until the end of the 5 years and you have paid in full plus interest.
It really depends on how the land contract is recorded. If it is recorded properly, the buyer will be on the deed and tax bill as the owner. If only the land contract memorandum is recorded, the land contract holder will remain on deed and tax bill. I have seen it both ways.
thank you for shearing information. i have a question? new neighbor moved to next my property with 5 years payment plan with rent to owne deal that means they are not owne the property yet. and they start cut all big trees over 150ft tall and they traspass cut few of my big trees and solded. im wandering how is responsble for damage?rentals? or property owner? please halp thank you.
Yes, but it can't be recorded. Once it's executed for 12 months, the buyer can refinance into a conventional loan. Can't do it on FHA because FHA requires it to be recorded for 12 months.
@@venegascapital The seller will keep their current mortgage in place and continue to pay the mortgage payment like they always have. The buyer will pay the land contract payments to the seller. After 12 months land contract payment have been made, the buyer can refinance into a conventional loan.
Hello I have a question to ask as I am doing research if I have a commercial property under contract as me being the buyer and it’s under a contract for deed along with a affidavit of equitable interest for let’s say $300k and I fix up the property in 5 years wile making payments to the seller to bring the balance down and at the end of the 5 years the property is now worth $1.1m can I refinance the property for the amount left over to cash out the seller?
Hi, considering a contract for deed, if the buyer defaults, what is the name of the court motion that the seller must file to regain physical possession (we already recorded the special warranty deed from buyer back to seller) ?
This would be a great question for a real estate attorney. I'm not sure, as I am a mortgage loan officer. Did you already have a notice of default recorded?
So when the land contract is initiated what type of filing needs to be done to make sure the county sees it as yours at the end of the contract ? Or do you just record everything on your own time then file / register the house as yours when the balloon is payed ?
I'm looking into owner financing. This Company has lots of home majority manufactured homes with land. They are the owner. 10 percent interest. No prepayment penalty with a fixed rate. But l need to understand how will l gain anything if my if they are considered still owning until its paid in full? She mentioned contract of deed. So will my name go on anything to protect me? Taxes and insurance included as well. Still trying to figure out how that works also?
When you buy it, you want to make sure you use a title company at closing to ensure it's properly recorded. If it's properly recorded, then the taxes and everything will be in your name. And the seller would have a lien on the home until you pay it off in full through payments, or until you refinance.
Hi, I purchased a home in Feb 2017. Every time I attempted to payoff the house "owner" refused to allow me to.. she would scream at me on the phone.. well , while paying my taxes the girls at tax office informed me that "owner" refinanced my home in Sept 2018, then again in Aug 2019 for 500,000. It was financed with 7 other houses as a group... I contacted her and told her I want every penny back including all taxes I paid .. she said, " Give me your attorneys name and number" I cant afford an attorney.. I will never obtain my house now and not sure what to do... any ideas would surely help. Thanks!
I agree that you need to seek legal counsel. You can speak with an attorney and typically get some feedback as to whether or not they can help you. I recommend you reach out to an attorney at your earliest convenience for an initial consultation.
@@MortgagebyAdam Yes, I forgot to mention that it was a contract for deed. They called yesterday and offered me 5 grand to release the home back to them. I have 27 grand in it so far. I said no...
No, they do not have to own the property free and clear in order to sell on land contract. It is common for sellers to still have a mortgage when selling on land contract, and when executing the land contract they only have the land contract memorandum recorded. But it is possible for the buyer to refinance out of the land contract after 12 months payments even if the land contract wasn't recorded (conventional mortgage loan). Hope this helps. If you need more clarity feel free to reach out www.balanceprocess.com/contact/ all the best!
What happens if you paid as agreed, and completely paid off as agreed, but the owner dies...and no deed transfered per the county recorded land contract...property is still in deceased owner's name??
That is a great question. I recommend you reach out to a local title company or real estate attorney for guidance on that. Here is a company that helps with real estate law in most states: res-title.com/ I hope this helps. All the best!
Hi I’ll be 21 November 20th and my girlfriend will be 19 this January, I just wanted to state that, but our son is due January 5th and we found our dream home on Zillow / Howard Hanna, it was 400k but it dropped to 375k . If my girlfriend and I are making 4-6k a month I want to do a land contract with a 11k down
No, you do not have to have perfect credit. Can be below 600. But minimum loan amount is typically 100K depending on the scenario. Shoot me an inquiry, happy to take a look. Contact me here: www.balanceprocess.com/contact/
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I'm so glad this video has been useful for so many people! Be sure to subscribe so you don't miss my best mortgage tips and you're welcome to reach out to me directly for more information anytime here: www.balanceprocess.com/buying-a-home-on-land-contract/
so legit, I ran into all the issues you were talking about in the beginning of the video! Key is definitely knowing your options and finding the right lender!
Thank you ! Very informative !😊👍🏾
This was very helpful
Thank you!
This was hugely informative!!
I had some misconceptions about what a land contract was for and maybe I'm looking for something more like seller financing.
I thought they were one in the same?
My unique situation and hope was that I could purchase a home on land contract with little down, buying tine to repair credit.
I am a software engineer with a decent salary but am just starting this specific path and my salary is at the lower junior level reflecting experience. It will only increase is the point.
I had a 2 year lapse in employment trying to get my own company off of the ground and failed so my credit is low 500s.
The unique part continues....we have 4 large dogs and some cats. my wife is a vet tech and we are both animal lovers.
Anyway thanks for this video I went ahead and subbed up and I'm going to try to get some learning on this stuff;)
Yes, a land contract is the instrument used to record "seller financing". Glad it was helpful! 🙂
Great
Thank you
Thank You!
Absolutely!
Hi there, I wrote down everything you said, I've been renting a house for about 4 years with my boyfriend and finally they've decided they are not renting anymore, I was thinking of getting a land contract home as a permanent home( fix it up myself) was wondering is that a good option for first time "owning" a home or not? I don't want to get stuck renting for the rest of my life 👍😀 p.s. I'm in Michigan p.s.s both have not great credit. Appreciate a response 😊
Hey Ashley. Yes, land contract is a great way to go if traditional financing is not an option. It is truly "owning" but instead of using a bank for financing, the seller provides the financing. You're welcome to reach out to me anytime here: www.balanceprocess.com/contact/
All the best!
Ah thank you so much, I'll need to talk with a couple people, but expect an email soon! Thanks for the video as well!
@@ashleyb7702 same here. Renting for 4-5 years and owner wants the place out of her hands. And also from MI ✋👈 Hope it's still working out for you👍
😀😀😀 thank you!
Welcome 😎
How are taxes handled? Who makes the payments, and who gets to depreciate the property?
It depends on how the title company records it. If the land contract is recorded properly, the tax bill will be in the buyers (new owner's) name. Same goes for depreciation I believe, but you'd need to check with a CPA to confirm.
Question: I’m looking at a seller finance deal where it’s a duplex $340k with 10% down 30 year amortized with a 5 year balloon. When I go to refinance year 4 or 5 does that pay off the seller completely? Confused how how they would get paid there full money back through the refinance process
Yes. The lender will contact the land contract holder to obtain a payoff. It would be paid in full. Make sure you use a title company when you close with the seller so that everything is recorded properly.
Well it might be a little too late. Have a friend who house is foreclosue due to back taxes Seller is willing to let him buy back the house in a land contract. Was wondering, who will pay the back taxes? Him or the Seller. Or can the back taxes be added on to the contract?
If the friend's house is in foreclosure because of back taxes, then the taxes need to be paid or friend will lose the house. I'm not sure who you're referring to as the seller.
In a land contract, you aren't the owner until you satisfy the terms of the contract. So if your contract states a purchase price for 250k for 5 years. You aren't the official owner of the property until the end of the 5 years and you have paid in full plus interest.
It really depends on how the land contract is recorded. If it is recorded properly, the buyer will be on the deed and tax bill as the owner. If only the land contract memorandum is recorded, the land contract holder will remain on deed and tax bill. I have seen it both ways.
thank you for shearing information.
i have a question?
new neighbor moved to next my property with 5 years payment plan with rent to owne deal that means they are not owne the property yet.
and they start cut all big trees over 150ft tall and they traspass cut few of my big trees and solded.
im wandering how is responsble for damage?rentals? or property owner?
please halp thank you.
Please inquire here BalanceProcess.com
what if the seller has a mortgage already? can you still do a land contract?
Yes, but it can't be recorded. Once it's executed for 12 months, the buyer can refinance into a conventional loan. Can't do it on FHA because FHA requires it to be recorded for 12 months.
@@MortgagebyAdam The buyer will have to stay with the current lender the seller has right? and make payments for 12 months to later refinance.
@@venegascapital The seller will keep their current mortgage in place and continue to pay the mortgage payment like they always have. The buyer will pay the land contract payments to the seller. After 12 months land contract payment have been made, the buyer can refinance into a conventional loan.
Hello I have a question to ask as I am doing research if I have a commercial property under contract as me being the buyer and it’s under a contract for deed along with a affidavit of equitable interest for let’s say $300k and I fix up the property in 5 years wile making payments to the seller to bring the balance down and at the end of the 5 years the property is now worth $1.1m can I refinance the property for the amount left over to cash out the seller?
I'm sorry, I don't know how it works in the commercial world. I am a residential guy.
Thanks! 👍
Welcome!
Hi, considering a contract for deed, if the buyer defaults, what is the name of the court motion that the seller must file to regain physical possession (we already recorded the special warranty deed from buyer back to seller) ?
This would be a great question for a real estate attorney. I'm not sure, as I am a mortgage loan officer. Did you already have a notice of default recorded?
So when the land contract is initiated what type of filing needs to be done to make sure the county sees it as yours at the end of the contract ? Or do you just record everything on your own time then file / register the house as yours when the balloon is payed ?
Close it at title company office so they can ensure all recording is done properly.
what about a free and clear house . how would you do terms if the house needs a rehab
You would need to do a refinance, and get a mortgage or home equity loan.
I'm looking into owner financing. This Company has lots of home majority manufactured homes with land. They are the owner. 10 percent interest. No prepayment penalty with a fixed rate. But l need to understand how will l gain anything if my if they are considered still owning until its paid in full? She mentioned contract of deed. So will my name go on anything to protect me? Taxes and insurance included as well. Still trying to figure out how that works also?
When you buy it, you want to make sure you use a title company at closing to ensure it's properly recorded. If it's properly recorded, then the taxes and everything will be in your name. And the seller would have a lien on the home until you pay it off in full through payments, or until you refinance.
Hi, I purchased a home in Feb 2017. Every time I attempted to payoff the house "owner" refused to allow me to.. she would scream at me on the phone.. well , while paying my taxes the girls at tax office informed me that "owner" refinanced my home in Sept 2018, then again in Aug 2019 for 500,000. It was financed with 7 other houses as a group... I contacted her and told her I want every penny back including all taxes I paid .. she said, " Give me your attorneys name and number" I cant afford an attorney.. I will never obtain my house now and not sure what to do... any ideas would surely help. Thanks!
I agree that you need to seek legal counsel. You can speak with an attorney and typically get some feedback as to whether or not they can help you. I recommend you reach out to an attorney at your earliest convenience for an initial consultation.
@@MortgagebyAdam
Yes, I forgot to mention that it was a contract for deed. They called yesterday and offered me 5 grand to release the home back to them. I have 27 grand in it so far. I said no...
Does the seller have to own the property outright (mortgage free) in order to sell it to another buyer on a land contract ?
No, they do not have to own the property free and clear in order to sell on land contract. It is common for sellers to still have a mortgage when selling on land contract, and when executing the land contract they only have the land contract memorandum recorded. But it is possible for the buyer to refinance out of the land contract after 12 months payments even if the land contract wasn't recorded (conventional mortgage loan). Hope this helps. If you need more clarity feel free to reach out www.balanceprocess.com/contact/ all the best!
Are you a lawyer?? I live in Michigan trying to find a good one thanks
No, I am just a mortgage guy. For real estate attorney, try Abstract Title in Troy.
What happens if you paid as agreed, and completely paid off as agreed, but the owner dies...and no deed transfered per the county recorded land contract...property is still in deceased owner's name??
That is a great question. I recommend you reach out to a local title company or real estate attorney for guidance on that. Here is a company that helps with real estate law in most states: res-title.com/ I hope this helps. All the best!
Hi I’ll be 21 November 20th and my girlfriend will be 19 this January, I just wanted to state that, but our son is due January 5th and we found our dream home on Zillow / Howard Hanna, it was 400k but it dropped to 375k . If my girlfriend and I are making 4-6k a month I want to do a land contract with a 11k down
Congratulations on the addition to your family! Have you reached out to the seller to see if they will consider selling it on land contract?
Do you need tohave good credit to finance out of it.
No, you do not have to have perfect credit. Can be below 600. But minimum loan amount is typically 100K depending on the scenario. Shoot me an inquiry, happy to take a look. Contact me here: www.balanceprocess.com/contact/
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248-894-2763
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