Different between land Contract and Seller Financing.

http://blog.wenxuecity.com/blogview.php?date=200906&postID=12710

there is big different between land contract & seller financing. 2009-06-09 21:17:04
Please understand there is big different between land contract & seller financing.

seller financing is you financing the deal, go thru normal closing, and you end up holding a mortgage note, when the buyer default, you will have to go thru normal foreclosure, which take 6 month to a year.

Land Contract is you selling the property in installment, you holding the deed, while the buyer paying for the equity in installments, you can go thru an eviction like normal, but the court may find buyer owns a sizable equity in the property, which may delay the eviction process.

while both methods sounds very attractive, but there can be pitfalls to such an arrangement, The lender can demand payment in full of the loan, forcing you to procure a loan to pay off the mortgage.

please read:

http://www.frascona.com/resource/jag404ilc.htm
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由jy101张贴 @ 2009-06-09 21:17:04 (12

所有跟帖： 

• 学习了，谢谢。 -laoyangdelp- ♀ (0 bytes) () 02/16/2010 postreply 17:33:36

• 一个好处是高利率，高卖价 -槑- ♀ (543 bytes) () 02/16/2010 postreply 19:53:54

• I agree that the return is great if the contract performs... -jy101- ♂ (583 bytes) () 02/16/2010 postreply 20:13:50

• and that is why I recommend a minimum down payment -jy101- ♂ (51 bytes) () 02/16/2010 postreply 20:21:15

• I understood, but few buyer has the money -槑- ♀ (0 bytes) () 02/16/2010 postreply 20:22:23

• thank, i will defintely keep your advice in mind -槑- ♀ (509 bytes) () 02/16/2010 postreply 20:21:23

• that you should consult an attorney.....there can be big problem -jy101- ♂ (426 bytes) () 02/16/2010 postreply 20:39:18

• thanks a lot for your advice which always helps -槑- ♀ (0 bytes) () 02/16/2010 postreply 20:42:36

• seller financing于deed无关，land contract一般deed不变，可以registr,也可不 -槑- ♀ (240 bytes) () 02/16/2010 postreply 20:04:13

• land contract also know as contract for deed.. -jy101- ♂ (337 bytes) () 02/16/2010 postreply 20:18:27

• I had it done both way, seller finance and land contract. -jy101- ♂ (224 bytes) () 02/16/2010 postreply 20:24:30