Posted by Irwin on May 13, 1999 at 19:27:48:
Most sellers don’t want to give a deed to their property until they get paid in full. They don’t understand carrying back a mortgage and they get scared when their lawyer tells them that if the buyer doesn’t pay, they have to foreclose to get their property back. When a land contract is explained to them, the fear disappears, even though in many jurisdictions, where the buyer has equity built up, a seller also has to foreclose upon default. So for all practical purposes they are not that much different. As a buyer I always prefer the deed and mortgage. As a seller, I give, at most,a land contract (with small down payments, it’s a lease/option). You needn’t let the form of the financing stand in the way of making a good deal for yourself. Just be sure to have your lawyer review title, and the contracts for you. Don’t rely on your Realtor to do it.