Posted by terryr on April 30, 2001 at 22:35:18:
are you buyer or seller - all payments should go through escrow agent and at least the underlying lending source will be paid
Land Contracts - Posted by Matt
Posted by Matt on April 30, 2001 at 17:57:06:
Hi, I come from a background of conventional financing but have read a lot on the web site and also attended the convention in Atlanta and am willing to change my thinking espicially when it can, over the long run, net me more money. Here is my situation.
I have an offer for $64,900 with $7,000 down land contract. Buyers and sellers have agreed to a 3 year land contract for around $550 a month which equates to a 9 1/2% interest 30 year amoritization interest only payment of ~$465 with the balance being $65.40 taxes and $30.00 insurance. There is also a 3% appreciation clause for the third year giving the buyers an incentive to cash me out in 2 years. This is top price for the area.
My concerns are; what am I missing (this sounds too good)?, what if the buyers default on the loan to me (I will have bank financing for $40,000), how should I hold/deliver title/deed?, what if the buyer files for bankruptcy? etc.
I need advise in what to do, please offer your comments.
Thanks,
Matt