Land Contracts are Viable Financing Alternatives

Holy toledo! You'd think I had suggested that all the agents in my office should pull pantyhose over their heads and go rob Wells Fargo from the reaction I received. I simply asked about bringing in a speaker to talk about land contracts, and memos to office managers went flying.

The answer was unequivocally NO. Nope, my company's legal counsel said, we don't do contracts for deed unless both sellers and buyers obtain independent legal representation.

In any case, the lawyers don't want to educate or arm real estate agents with knowledge about land contracts, even though there are more and more transactions being recorded that DO involve a land contract. And I suspect this increase in activity will continue throughout 2007, if for no other reason than many buyers today might not be able to buy a home any other way. Land contracts are seller financed, which means no loan fees to pay, easier qualifying, lower interest rates and more favorable terms for the home buyer, especially for those who might not have stellar credit.

Ready to Read More Articles? Click below:

• Buying with Bad Credit
  
• Become a Habitat Home Owner
  
• Getting a Mortgage in a Slumping Market

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