Posted by Ken (ILL) on March 13, 2001 at 18:19:09:
land contract…owner keeps title, but you get everything else, includung payment. However, the payment is usually to owner or their bank (The latter is prefered). Then when paid off, you get the title.
Wrap-around (Subject To)… You sign a contract stating that you will take over the loan. This contract is usually with the SELLER, NOT THE BANK. The bank MAY call the note due, but if you keep on paying them, 99.99% of the time they will remain happy. Especially if you can pay MORE than the payment due. The title is yours (if you remember to get it!), the original note is STILL in the original ownwer’s name, DOS can be called, but if you pay, everyone usually comes out smiling… win-win-win situation.