Land Contract term - Posted by K.Smith

Real Estate Investing
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Posted by Mitch on December 20, 2001 at 13:37:13:

I"m stepping into areas I shouldn’t be…
Try researching the “legal forum” archives for better information.

Yes they are very similar, I think the difference is the foreclosure processes of each…

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Land Contract term - Posted by K.Smith

Posted by K.Smith on December 20, 2001 at 08:38:12:

When buying a home via Land Contract what is the typical term in years that it is negotiated ?

Thanks for your help.
K.Smith

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Re: Land Contract term - Posted by Mitch

Posted by Mitch on December 20, 2001 at 09:58:06:

Careful here… Not sure where you are buying, but if I remember correctly (in Oregon) buying on a land contract puts the buyer at a disadvantage when compared to a mortgage or trust deed.

On a land contract the buyer has the rights to make payments and use the property within the guidelines set within the contract and local zoning laws. If the buyer misses payments, then the contract owner has right to redeem the property and keep all $$ buyer has paid. This redemption occurs rather quickly, but I don’t remember the time frame.

With the mortgage or note/trust deed, if the buyer misses payments, the holder must go thru foreclosure proceedings. That gives Buyer sometime to sell and retrieve a portion of their equity if they need to sell quickly.

As for your question, everything is negotiable, so I"m not sure if there’s a “typcial” term… 10,15,20,50?
A few years ago, I bought a note that had 22 year amorization specified in the original documents.

If I need correcting, please post the right answers.
Mitch

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Re: Land Contract term - Posted by K.Smith

Posted by K.Smith on December 20, 2001 at 12:22:56:

Mitch, let’s say I am trying to buy a home subject to the existing financing but seller will not hand over the deed because they aren’t comfortable with that arrangement but they do like the idea of installment payments for the deed. Are you saying that it is more advantageous for my position to have the seller give me a deed of trust (I’m in Virginia) rather than a Land Contract ?

Thanks for your response.
K.Smith

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Re: Land Contract term - Posted by Michelle Hobbs

Posted by Michelle Hobbs on December 26, 2001 at 23:18:15:

I have a question for all of you on this web site???

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Re: Land Contract term - Posted by Mitch

Posted by Mitch on December 20, 2001 at 12:28:29:

I’m not a lawyer, so I would double check with one familar with your state laws. If it were me, I’d avoid the land sale contract.

Mitch

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Re: Land Contract term - Posted by Johnnie

Posted by Johnnie on December 20, 2001 at 13:09:03:

isn’t a deed of trust, trust deed, and mortgage basically the same thing?

Thanks