Financial Information
Is there a difference between a contract for the land and seller financing?
I saw a house for sale and the list of people he said were two options for financing. Are they two different things, or just two ways of saying the same thing? Reply
Mortgageman on a contract
Earth, rent until you are able to refinance in your name. All details are worked in advance and recorded with the county. They would be on the title. I do not know the legality of the seller financing. I think the seller acts as a bank and pay them for 30 years.
Yes there is a difference.
On a land contract you will not own the property or be on title until you pay off the land contract completely. After the land contract has been paid, then your name will be recorded on the title.
On seller financing you go through and complete the transaction through a closing agent or an escrow. Once this transaction is complete you become the owner you are on the title, you are responsible for the county taxes, hazard insurance.
The escrow or closing agent make a note and deed of trust in favor of the seller with the terms(How many years you have to pay the note), interest, monthly mortgage payment.
I hope this has been of some use to you, good luck.
“FIGHT ON”
You now have a mortgage to pay to the seller. Failure to pay will or could result in the seller placing the property in foreclosure.
I hope this has been of some use to you, good luck.
“FIGHT ON”