Due to the much shorter time for the seller to regain control of the property while retaining the option deposit paid in advance and receiving a judgment for lease payments, a lease with an option to purchase should always be considered before a seller enters into a land contract. To find out which properties are for sale, visit the Featured Homes section of our website, follow us on Facebook, check out the Flint Properties Portal, provide your email address to receive a weekly email with this week`s Open House, or pick up free flyers at our office. We will have new homes available every week. Information about each property, including the number of bedrooms, bathrooms and square meters, is also available in the same places. Stop wasting time walking around houses without having information about the house, or going through lists just to find homes that don`t meet your needs. In the event that the buyer is in default, a lease agreement with an option to purchase is advantageous for the seller. If the buyer is in default with a real estate contract, the seller can initiate a confiscation or enforcement procedure. The confiscation of a land contract does not allow the recovery of outstanding amounts or an acceleration of the remaining balance, and the buyer has a repayment period of three or six months after a judgment has been rendered by the court. In some cases, the seller of the house is willing to rent out the property until it is repaid in full, and this is usually the most common form of land contract structures. However, land contracts are on a case-by-case basis and depend on the agreement of the seller and the buyer on the terms. For more information and to see what is available on the market, do not hesitate to contact us. Land contracts are a very popular way to transfer property, with 397 land contracts registered in Muskegon County in 2012.
The most common use of a land contract is to provide short-term financing to the seller when a potential buyer is unable to obtain traditional bank financing. What is needed for a land contract is about 10-30% for the house and a monthly payment that allows you to repay the house or a balloon structure that allows you to refinance yourself through more conventional means and ideally at a lower interest rate. The duration of a land contract varies depending on the amount, but does not exceed 5 years. An applicant must provide proof of income with their offer. The estimated cost of housing must not exceed 30% of the applicant`s income to be eligible for the land contract. (Housing costs are defined as: payment of land contracts, estimation of property taxes, estimation of water costs, and estimation of ancillary costs.) If everything goes according to plan, a land contract can be a win-win situation for both the buyer and seller. The buyer can start building the equity in a home and improve their credit score, while the seller can receive interest payments. Unlike an owner-tenant relationship, the seller is often no longer directly responsible for maintaining the property because the buyer owns the appropriate ownership of the property. But what if things don`t go as planned? What happens if the buyer loses his job and can no longer pay? What happens if bank financing is still not available at the end of the term? What happens if the seller has an existing mortgage on the property? With that in mind, it might have been easier for the seller to sign a lease with an option to purchase than a land contract. While entering a land contract allows for the recovery of outstanding amounts and the acceleration of the balance, it is a long and expensive process that takes up to a year for the seller to regain full control of the property after the repayment period. In the event of loss of rent, the waiting period for eviction after receiving a court order is only 10 days instead of the minimum redemption period of three to six months for a property contract judgment. Applicants must meet all of the criteria listed in residential land transfer policies to be considered for a land contract.
Land Bank Policies Land contracts are seller-funded properties in which you own the property and pay the monthly payments to the seller until the balance is repaid…