Land Contract Convert For Free

Contract for Deed Refinancing In many cases you may be able to refinance your contract for deed, though you'll need to work with a mortgage lender. In a contract for deed refinance, the seller currently providing your financing sells you the home and you use a new mortgage loan to purchase it and gain legal ownership.

Read your land contract carefully, or have an attorney help you. Confirm the payoff amount with the contract holder and let her know that your intent is to pay off the property. Draft a grant deed form that the contract holder can sign to transfer the legal title of the property to you.

A big disadvantage for sellers who participate in a land contract is that they have to wait for the buyer to pay off the home over a certain number of years.A balloon payment might be included so that a buyer has to pay off the balance within a shorter amount of time.

Here are some of the risks: The seller retains the right to the property until you pay in full, no matter how much money you put into it. If you miss any payments, the seller can quickly cancel the contract and keep every cent you've paid (state laws vary on how this goes down)

On a land contract, the buyer is responsible for property taxes, insurance and mortgage interest, although these will usually be paid through the seller. However, the buyer does get to deduct them from his or her taxes; the seller cannot.

Disadvantage #1: The title does not automatically pass to the purchaser in a land contract. Disadvantage #2: The seller could be held legally responsible for inspection issues with local or state authorities. Disadvantage #3: Forfeiture of a land contract by the purchaser is a fairly common occurrence.

A land contract is established when a buyer and seller enter into a formal, legal agreement regarding the purchase of the seller's property. The buyer will make the agreed upon payments until they've satisfied the contract requirements or until they're able to refinance to pay off the contract.