"Owner Financing" - Page 2 - Survivalist Forum
Survivalist Forum

Advertise Here

Go Back   Survivalist Forum > >
Articles Classifieds Donations Gallery Groups Links Store Survival Files


Notices

Farming, Gardening & Homesteading Country lifestyle, homesteading, blacksmithing and living off the grid.

Advertise Here
Reply
 
Thread Tools Display Modes
Old 11-19-2019, 07:28 PM
two bits two bits is offline
patriarch
 
Join Date: Nov 2012
Location: southern Indiana
Posts: 4,665
Thanks: 2,129
Thanked 5,918 Times in 2,838 Posts
Default



Advertise Here

There is a lot of times that a landowners ask more for the property than it is worth or a bank will loan against the property. These owners will then sell on contract. Most owners that sell on contract ask double the interest rates, cause they can. The reason? Buyers have bad credit, employed less than year, a poor credit history with utility companies and landlords. Read the fine print, you can be evicted after the failure of one payment.
My daughter bought a home on contract, with the stipulation that a bank loan would be acquired in 3 years to pay off the contract. In which she did.
Quick reply to this message
The Following 2 Users Say Thank You to two bits For This Useful Post:
Old 11-20-2019, 02:28 PM
francessanne francessanne is offline
Survivor
 
Join Date: Oct 2014
Location: on the mountain in NJ
Posts: 2,007
Thanks: 1,545
Thanked 2,671 Times in 1,133 Posts
Default

Quote:
Originally Posted by MattB4 View Post
The property owner will often not have it recorded until Deed transfer. No real need to do so unless taxes are going to be sent to the person buying the property. Which brings up one situation with Property contracts to keep in mind. Are the property taxes being paid? Both the Seller and the buyer needs to keep aware of this to prevent property sold at Tax auction.

Properly witnessed and signed Contracts are binding instruments. The idea of the Notary is simply to ensure a person with State sanction has checked that the signatures are valid. Courts have ruled over and over that even verbal contracts between two parties can be binding in law.
the property owner will not have to record the sales contract--BUT THE BUYER SHOULD. that puts you on title and in position in case of any legal problems or wanting to refinance, sell etc. always do what you can to c.y.a.
Quick reply to this message
Old 11-20-2019, 02:36 PM
francessanne francessanne is offline
Survivor
 
Join Date: Oct 2014
Location: on the mountain in NJ
Posts: 2,007
Thanks: 1,545
Thanked 2,671 Times in 1,133 Posts
Default

Quote:
Originally Posted by MattB4 View Post
Not going to happen. You might arrange to pay entirely for a part, say like 3 acres needed to get a home finance loan from a bank, with the rest of the land held under contract, but no one transfers ownership as a percentage of amount paid.

Land contracts work for the owner because they have the power to tear up the contract (the property can then be resold without foreclosure complications) if payment is not made according to the terms of the contract. For the buyer they have a legal contract that gives them ownership if they make all the payments and abide by all the terms.

People should understand what they are getting into but they should also understand that the only reason they are going Land Contract for Deed is they do not have the money to buy outright. They also probably lack the ability to borrow from a traditional lender. They are not in the position to make onerous demands on the process.
bologna. you can have a contract say whatever you want it to say. if two people agree to terms, guess what? you have a fully executed and legal contract. i have indeed seen land contracts that give proportionate ownership as property is paid off. if you havent ASKED for that, you didnt get it.

additonally, people sell their property in many ways for many reasons...yeah, i worked as an investor for a lot of years. it's possible that the retained lands will still be farmed on and sold so the owner will still receive an income from the goods sold during the full sale process. it's possible that there are tax consequences and the buyer doesnt want all the money in one year. it's possible that the owner wants income for a number of years for family members...dont ever assume YOU know the reasons for a contract for deed.
Quick reply to this message
Old 11-20-2019, 02:41 PM
francessanne francessanne is offline
Survivor
 
Join Date: Oct 2014
Location: on the mountain in NJ
Posts: 2,007
Thanks: 1,545
Thanked 2,671 Times in 1,133 Posts
Default

Quote:
Originally Posted by two bits View Post
There is a lot of times that a landowners ask more for the property than it is worth or a bank will loan against the property. These owners will then sell on contract. Most owners that sell on contract ask double the interest rates, cause they can. The reason? Buyers have bad credit, employed less than year, a poor credit history with utility companies and landlords. Read the fine print, you can be evicted after the failure of one payment.
My daughter bought a home on contract, with the stipulation that a bank loan would be acquired in 3 years to pay off the contract. In which she did.
there s a little thing called usury...owners are legally stopped from asking what ever they want for an interest rate. interest rates allowed vary by state.

anyone buying piece of property should have an appraisal done for it's real sale value.
Quick reply to this message
Old 11-20-2019, 03:21 PM
MattB4 MattB4 is offline
Closed for the Season.
 
Join Date: Jun 2011
Posts: 15,773
Thanks: 22,099
Thanked 30,646 Times in 10,725 Posts
Default

Quote:
Originally Posted by francessanne View Post
bologna. you can have a contract say whatever you want it to say. if two people agree to terms, guess what? you have a fully executed and legal contract. ...
You are correct. But a land owner would be a idiot to agree to such a thing. But hey anything is possible.

Might as well ask your credit card company not to charge high interest and penalties for late payments. Or your Bank after foreclosure to send you your share of the property back.

I have sold a lot of properties on Contract for Deed. I use standard forms for the most part when doing so. I would not ever listen to a prospective buyer that kept coming up with annoying requests.
Quick reply to this message
Old 11-22-2019, 01:37 PM
two bits two bits is offline
patriarch
 
Join Date: Nov 2012
Location: southern Indiana
Posts: 4,665
Thanks: 2,129
Thanked 5,918 Times in 2,838 Posts
Default

Quote:
Originally Posted by francessanne View Post
there s a little thing called usury...owners are legally stopped from asking what ever they want for an interest rate. interest rates allowed vary by state.

anyone buying piece of property should have an appraisal done for it's real sale value.
Asking for owner financing is a red flag to some property owners. Most buyers will pay more for the property and higher interest rate on the balance to buy. That's how they got in the situation their in.

In Indiana, new legislation capped the maximum interest rate for loans under $50,000 at 21%. Generally, loans in the past in Indiana were also capped for the most part at under 25% under general usury legal concepts. ... It also applies only to loans under $50,000 only.
Quick reply to this message
Old 11-22-2019, 08:33 PM
workquik workquik is offline
Trapper
 
Join Date: Aug 2012
Posts: 845
Thanks: 474
Thanked 1,278 Times in 509 Posts
Default

Quote:
Originally Posted by pengyou View Post
I am looking at buying some land where the owner provides financing. This will be a big help to me but I am not sure how to do it so that I (and the money I am paying for the property) am protected. Does anyone have any experience with this? Any suggestions?
I have bought several properties this way. Usually rural, undeveloped land. A total of five incorporating a bit over eighty acres. It works easy, make your payments and own the land, miss three and default.

Last edited by workquik; 11-22-2019 at 08:34 PM.. Reason: Spelling
Quick reply to this message
The Following 2 Users Say Thank You to workquik For This Useful Post:
Reply

Bookmarks



Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Survivalist Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:
Gender
Insurance
Please select your insurance company (Optional)

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 05:01 PM.


Powered by vBulletin®
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Search Engine Optimisation provided by DragonByte SEO (Lite) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Copyright © Kevin Felts 2006 - 2015,
Green theme by http://www.themesbydesign.net