MINNESOTA CONTRACT FOR DEED HOMES FOR SALE.
100S OF HOUSES-CONDO-TOWN HOMES-FOR SALE BY OWNERS.
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Land contracts is very popular in today’s real estate markets IN THE 70-80S Some people call them installment sale contracts, sometimes called contracts for deed, land contracts-owner financing-seller financing there is a lot of different ways to call owner financed homes but they all boil down to the same thing. Sellers offering attractive financing terms-Contract for deeds are usually a little over market rates but more easier to qualify than standards of institutional lenders.
With tight mortgage standards this is one of the best way to sell a property. http://www.nationwidecontractfordeeds.com
What is an Installment Sale Land Contract?
• The Vendor agrees to sell a property by financing the purchase for the Vendee.
• The Vendor retains legal title and the Vendee receives equitable title.
• The owner-carried financing can include an existing mortgage balance or the property can be free and clear.
• Upon payment in full, the Vendor hands the Vendee a deed to the property.
WHAT IS A WRAP AROUND MORTGAGE? OR WRAP AROUND CONTRACT FOR DEED?
• Wrap-around contracts contain an existing mortgage. • The Vendee makes one payment to the Vendor.
• Upon receipt of the payment, the Vendor pays the underlying lender's payment and keeps the rest.
• If the existing mortgage has a lower interest rate than the rate on the contract, the Vendor earns extra interest on money that does not belong to the Vendor.
This is how it works.
1. Say the sales price is $200,000.
2. The Vendee puts down $20,000.
3. The Vendee agrees to make payments on $180,000, bearing interest at 6.0%, payable $1079.19.
4. The existing underlying loan is $90,000, payable at 5% interest with a payment of $322.09
5. The Vendor earns 6.0% interest on $180,000 of equity, PLUS 1.% interest on the existing mortgage of $90,000 and pockets $ a month.751.10
Power of Sale
• Like a trustor in a trust deed, the Vendor and Vendee assign right, title and interest to the trustee for the purpose of securing the Vendor's and Vendee's obligations.
• In the event the Vendee stops making payments, the Trustee has the power to foreclose under the power of sale.
• The process of filing a notice of default varies from state to state.
• Title insurance is highly recommended when buying a house with owner financing.
Acceleration Clauses in Underlying Loans
All loans today could have acceleration clause Lenders have had a long history of calling loans immediately due and payable if buyers took title "subject to" to the existing loans. That's because lenders wanted the buyers to qualify, pay loan points and higher interest rates.
BUT IN TODAYS MARKET THEY ARE MORE INTERESTED IN JUST GETTING PAID. THEY HAVE THE RIGHT TO ACCELERATE THE LOAN BUT WILL THEY DO IT NOT LIKELY. Seek legal advice on this subject.
Vendee's Bundle of Rights
For all practical purposes, the Vendee owns the property and has the right of:
• Quiet enjoyment and use of the property.
• Exclusion, forcing others to leave the premises.
• Resale.
Benefits to the Vendee
• Down payment flexibility. The sellers usually require around 10% down do the sale price to do a contract for deed.
• Length of land contract term, interest rate and payments are negotiable.
• Low closing costs. There are no lender fees to pay.
• Fast closing. Transactions can close in 7 days or less.
• No appraisals unless buyer wants to pay for one.
Benefits to the Vendor
• If taxable, possibly can qualify for deferred gain.
• Monthly income.
• Often a better rate of return than money market accounts.
• If property is non-conforming, it's an easy way to sell.
• Quick closing if the property is vacant usually we can close on a property in 7 business days.
• Usually higher rate than most stocks in today’s stock market
Buyer Tips
• Obtain title insurance.
• Home inspection
• A realtor that specializes in owner financing
• Engage the services of a holding company to retain possession of an executed deed and the original documents.
Seller Tips
• Include both Vendor and Vendee names on the existing insurance policy.
• Hire a Real Estate Broker who specializes or very knowledgeable in contract for deed financing.
• Below is a list of related sites where you can list your property at no cost. Great spot to offer contract for deed financing-rent to own-owner financing-seller financed homes for sale.
• Buyers will have some sort of credit issues when buying a home with owner financing. The main thing to look for is a tax lien that can be attached to your home. Other things like credit scores shouldn’t be a big deal they will have time to work on their credit for a few years while they are paying the contract. There are companies out there you can pay to have the buyers contract payments recorded at all 3 major credit bureaus which will help raise credit scores. Remember the quicker the scores go back up the quicker they may be able to refinance the home.
• Put your home where 100os of potential buyers or sellers will see the property FREE OF CHARGE. http://www.nationwidecontractfordeeds.com/seller_register.html
• IF FOR SOME REASON YOU DON’T WANT TO SELL YOUR HOME ON A CD AND WANT TO OFFER RENT TO OWN-RENT TO BUY-LEASE ANY OF THESE OPTIONS YOU MAY ALSO PUT YOUR HOME FOR SALE ON THESE SITES. GOOD LUCK TO YOU—
• OUR GOAL IS TO HAVE EVERY IN THE UNITED STATES OWN A HOME With land contracts-rent to own-owner financed terms these terms give most people a change at the American dream.
• Bad credit-Foreclosures-Bankruptcy –repos don’t worry owner financing is the key for you to own a property with these past issues or current issues.
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