Posted by Michael Morrongiello on August 28, 2003 at 19:07:06:
Dan:
Get as much down as possible but make the deal with the buyer if it makes sense. A bare minimum would be 5% of the purchase price and you checking out their credit, employment, credit scores, and obtaining info for your file, etc.
Regards,
Michael Morrongiello
Can I refinance a L/C? - Posted by Dan C (MI)
Posted by Dan C (MI) on August 26, 2003 at 17:59:40:
I have a house for sale and was approached by a potential buyer to do a Land Contract. I own the house free and clear. My only experience is with buying on Land Contracts and I have always had them recorded.
I would like to refinace this house. However, the title would be clouded if I entered into a Land Contract. What is the best way to go about this? I assume not to record the L/C. I am not sure how savy the buyer is.
Also, what should be my spread on the interest rate?
Sincerely,
Dan
YES with the right L/C provisions… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on August 27, 2003 at 21:56:01:
Dan:
If the L/C Land Contract is not recorded and no “memorandum” of the L/C is recorded and the L/C contains a clause in it that states that the property owner can further encumber the property and this is acknowleged by the purchasers under the L/C then you can refinance this property in the future as no effective cloud or restrictions will exist to accomplish this.
An option agreement with a similar provision in it would allow the fee simple property owner to also borrow against their property even with an option in place.
To your success,
Michael Morrongiello