Land Contract Question - Posted by Pat

Posted by SteveG_Pa on November 04, 2003 at 22:30:13:

Yes its legal to do and contracts with a lien, the due on sale clause just means that the lender “may” call the loan due, not will, but may. It needs to be clear who will pay for this if it happens, but it probably wont. Buyer does not get title until certain conditions are met, usually when the note is paid in full.
With a sub2, the seller signs over the deed to the buyer right now, and leaves loan in sellers name.
With a CFD you build up equitable interest over time, with sub2 you get it all right now.


Land Contract Question - Posted by Pat

Posted by Pat on November 04, 2003 at 20:55:39:

I have read a few books about land contracts or deed for trust and have a question…when is it legal or is it legal to offer a buyer a land contract for a property that has existing financing in place? If legal, what are the issues I might face as a seller in that situation? How is this different than taking a property " subject to " the existing mortgage?
Thank you for your answer. I am in Florida and find it difficult to connect with a title company or attorney that understands these questions.