Me and my husband are going to try and buy a home and the owner is going to owner finance…what should we ask and what things need to be addressed?
To protect yourself as much as you can, but the home on a land contract & have it recorded with the county so you are responsible for the taxes & insurance. I would also get the home appraised so you know you are not over paying for it. Pay by check & be in the land contract for 1-5 years, refinance the home & pay the land contract holders off.
Good luck! I think that this is really the way to go. I purchased my first home on a land contract & had no problems.
October 7th, 2009 at 7:57 am
Get a real estate attorney!
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October 7th, 2009 at 8:12 am
Avoid this scenario if at all possible. You are dealing with what is termed a ‘land contract’, and they can be filled with pitfalls for the buyer.
Think about this. What if you pay the owner as agreed, and he does not pay his mortgage, if one exists. The property will be foreclosed, and the owner will walk with the money.
Do NOT do this without professional legal representation.
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October 7th, 2009 at 8:21 am
To protect yourself as much as you can, but the home on a land contract & have it recorded with the county so you are responsible for the taxes & insurance. I would also get the home appraised so you know you are not over paying for it. Pay by check & be in the land contract for 1-5 years, refinance the home & pay the land contract holders off.
Good luck! I think that this is really the way to go. I purchased my first home on a land contract & had no problems.
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October 7th, 2009 at 8:52 am
if the land contract is to be recorded. What appliances stay. who is paying taxes on the property. What is the rate of interest. Monthly payment . Is it a fixed note. If land contract is unrecorded –pay only by CHECK the first day of EVERY month for the first 12 -24 months then refinance
I am a mortgage banker in TN & KY
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