Reasons NOT to Use a Land Contract (ft. Eric Scharaga)

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Жыл бұрын

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Contact Eric Scharaga: eric@damencapital.com
Phone: 847-222-8888
Website: www.ericscharaga.com
In the world of seller financing, the land contract (contract for deed) is a well-known type of lending instrument, but it has some fundamental issues that can come into play for both parties, especially if the seller/lender (that's you) ever wants to sell their note to another investor.
In this conversation with Eric Scharaga, we discuss some key reasons not to use this document and why you may want to consider opting for a mortgage or deed of trust instead.
Note: Please do not interpret any part of this lesson or video as legal advice. Nobody in this conversation is a licensed attorney, and you should pursue legal advice in the state where you work before acting on anything we discuss here.

Пікірлер: 19

@damonjcrawford Жыл бұрын

This is an incredibly eye-opening 20 minutes, and worth watching multiple times. Thank you so much for introducing us to Mr. Scharaga. Surfing his web site is also time well spent.

@Retipster Жыл бұрын

I completely agree. Thanks for watching!

@selenerealtor2533 Жыл бұрын

Great information! Thanks

@Retipster Жыл бұрын

You bet!

@jdgreenerfc 11 ай бұрын

Thank you Seth and Eric... phenomenal interview.

@Retipster 11 ай бұрын

Thanks for checking it out, Jay!

@VIpanfried Жыл бұрын

Good information and explained well.

@Retipster Жыл бұрын

Thanks!

@toocatholic 2 ай бұрын

Friend of mine bought my house land contract was supposed to make final payment in 5 years, doesn't look like he's gonna make that 5yr date. Would I get to reclaim the house or does the court give him more time to make final payment

@Retipster 2 ай бұрын

It depends on the state requirements to terminate that land contract.

@sandigamer8955 Жыл бұрын

Pennsylvania it takes 3 years to foreclose. Pennsylvania 3% transfer tax, $10,000 fee on a 350k house.

@Retipster Жыл бұрын

Note to Self: Don't offer seller financing in Pennsylvania

@tb808 5 ай бұрын

What happens if buyer dies before making last payment? Can a seller get Leins against the title if you filed your contract for deed with a title company?

@Retipster 5 ай бұрын

Usually, the buyer's rights (and debts) to the property would go to their heirs or whoever gets the buyer's stuff according to their will (if they have one). This means the person who inherits the buyer's position has to keep making payments under the terms of the original contract. Also, if you recorded a memorandum of land contract (or a mortgage, in case you didn't use a land contract), you would already have clouded the title, making it pretty hard for that seller or their heirs to sell the property to anyone else until you release it.

@Chopping-it-up 2 ай бұрын

Love the info just wanted to know as a buyer is there a way I could sell a house that I bought through a land contract. I know the deed is still under the sellers name but if I fix the house up and bring the value up could I sell it and payback the seller and make a profit? I would like to know if there is a way to do that.

@tb808 2 ай бұрын

@@Chopping-it-up yes you can. You should first file a copy of the contract with a title company. That puts your name on the title. The title must be clean though. No outstanding loans or leins

@Chopping-it-up 2 ай бұрын

@@tb808 Thanks so much for your fast reply. I am looking to buy a house that is being sold on a land contract. And plan on fixing it and renting it out. But I don't want to keep the house for the 18 years they want. I would like to sell it in a few years. Can I also refinance doing it like this?

@tb808 2 ай бұрын

@@Chopping-it-up yes as long as the title is clear and the contract is filed with the county clerk and the contract allows you to pay it off early