I saw a house for sale and in the listing it said both of these were options for financing. Are they 2 different things, or just 2 ways of saying the same thing?
2007-08-23 06:19:21 · 3 answers · asked by Roland'sMommy 6 in Business & Finance ➔ Renting & Real Estate
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"
2007-08-23 07:25:54 · answer #1 · answered by loanmasterone 7 · 0⤊ 0⤋
On a Land Contract, you rent until you are able to refinance in your name. All of the details are worked out ahead of time and recorded with the county. You would be put on the Title. I don't know about the legality of Seller Financing. I assume the seller is acting as the bank and you would pay them for 30 years.
2007-08-23 06:30:43 · answer #2 · answered by ? 4 · 0⤊ 0⤋
A land settlement is an contract to purchase the residing house. normally you could desire a down cost, as while you're determining to purchase. RTO is you're renting the residing house, inclusive of your option to purchase it. a number of your hire would be utilized to the fee of the residing house ought to you identify to purchase it.
2016-10-03 03:18:05 · answer #3 · answered by ? 4 · 0⤊ 0⤋