Land Contract Remove Circle For Free

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.

The only way to forcibly change the ownership status is through a legal action and the resultant court order. However, if an owner chooses to be removed from the deed, it is simply a matter of preparing a new deed transferring that owner's interest in the property.

If the buyer defaults on the land contract, or fails to make the monthly payments to the seller as required, the seller can file a court action called land contract forfeiture.In other words, if the buyer fails to pay, the seller keeps all money received, plus the seller keeps the real estate.

If the buyer has not made all the payments and defaults on the land contract, the seller may be able to file a "land contract forfeiture" in court. Depending on the ruling, the seller may be able to keep all the money already paid to him as well as retaining the rights to the property.

The Payoff When you refinance a land contract, the initial contract you have with the seller gets paid off.Look out for any prepayment penalties you may have for closing the contract early. If you really want out, you may choose to pay these anyway, but it's something to be aware of. Know your credit score.

You are not able to report the payments to the credit bureaus. Only the creditors can report.But, more often than not, individuals who act as creditors in a land contract arrangement do not report payment history because they have to pay a fee to register with the reporting agencies and report payments.

This means there is an expiration date on the contract that says the buyer needs to pay it in full within a certain number of years (usually 5 years or less). At the time when the balloon payment is due, the buyer (you) will need to pay the remaining balance of the land contract.