[mostie]

Hey all, I just wanted to ask a question, and see if maybe someone knows something I don't (haha, that wouldn't be too tough!)---

Since we are moving back to Michigan (only FIVE more days, omgomgomg!) and since my husband's job is about as secure as a job can get in this economy (knock on wood), we plan on settling there permanently. Sigh! Soooo, given the excellent home prices these days, we're looking at possibly buying- we're so tired of leasing and renting, and paying thousands to someone else- I'm sure everyone understands. ANYway....

I will be honest; our credit is not up to par, and we're some points short-we're working with a credit repair agency, and making some headway- however, when I look at the idea of getting a regular loan, I have to say it just makes me shiver and it always, always has. The idea of paying double or even triple just makes me ill inside, not to mention all of the hidden costs associated with it, balloon payments, etc., etc., ad nauseum....I really do like the idea of a land contract for the simple reason that the middleman is out of the picture, and you're dealing with the owner. Of course, doing your due diligence is extremely important-having worked for a law office (in Michigan, even..), I have heard more horror stories from people who bought on a land contract, paid their payments on time, and then all of a sudden had the rug pulled out from under them when the house was foreclosed on because the owner was pocketing the money and allowing it to go into foreclosure! Of course some people have a little bit of a legal leg to stand on in a case like that, but the hassle, ugh----okay, i'm getting off-track here.....!

I have looked around on craigslist, and a couple of those "rent to own/land contract" websites, which seem to be much more foreclosures and sale by owner type situations as opposed to anything else-which of course you don't find out until you already pay for the seven-day "trial", lol. Where can I find actual homes on a land contract? I've found maybe one or two, and to be honest, I really thought there would be more than that- but what I've seen are people basically sitting on their property although they have it up for sale, unwilling to budge- which I can understand, in a way- they want the money, and they want all of it- but then again, it doesn't make a whole lot more sense to me, because wouldn't a steady payment each month and something down beat the heck out of having a house sit empty for months upon months?

So...anybody know of websites, etc., or just "word of mouth" in the Iron Mountain/Kingsford/Breitung Twp/Norway/Vulcan area? LOL

And one other thing- I also looked at the rent to own, and if we can possibly help it, we don't want to go in that direction either- all that really does is postpone the inevitable anyway- you have a couple of years to pay on a lease, with a small amount of your monthly rental payment going towards a down payment, then you have to get a regular loan anyway. And although we would have our credit up to par within another two or three months, I really want the option of a land contract if we possibly can- I'm telling you, regular loans just really scare me- maybe it's the "tied-down" thing that makes me nervous, I don't know, lol- more than that, it's just like I said, the idea that you are paying double or triple the cost of the house-

Okay, I'm rambling (moving jitters, and I'm tired..lol)- any thoughts or ideas, I'm open- thanks everyone!

[wcs40110]

Craigslist really seems to be the only place I've found them. Once in a while realtors are helpful. There's one in Jackson who specializes, but I can't think of the name right now.
Be very careful with a land contract. I have friends who were buying one, which went into foreclosure (people they were making payments to were no making them to the bank) and they ended up out a LOT of money. When asked what the recourse was they said none, as a land contract on a home with a mortgage is generally null in void.
ONE more helpful link, I actually bought a (large) lot of land through this company roselandco.com
It's a division of first national bank. Hope that hel.ps.

[mostie]

thanks, wcs- I would guess the best way on a land contract is if the owner owns it outright, and there is no mortgage- otherwise, anything can happen- thanks for the link, I'll check it out-

[notdeconcentrate]

I've seen some on rentjungle.com, which searches other websites for what you are looking for. Didn't see anything in just a quick search of that area. I've also seen them on regional real estate websites. I'd also talk to a local realtor when you get here.

[mostie]

Originally Posted by notdeconcentrate

I've seen some on rentjungle.com, which searches other websites for what you are looking for. Didn't see anything in just a quick search of that area. I've also seen them on regional real estate websites. I'd also talk to a local realtor when you get here.

Do you think a realtor would have listings like that, since it sort of cuts the realtor out? Or maybe they charge a fee to the owner? I have a slight distrust of realtors, right up there with attorneys, lol-

[notdeconcentrate]

Originally Posted by mostie

Do you think a realtor would have listings like that, since it sort of cuts the realtor out? Or maybe they charge a fee to the owner? I have a slight distrust of realtors, right up there with attorneys, lol-

I have seen them in my area offered through realtors, but I'm not sure how common it is.

[mostie]

You know I just find out a bit ago that if an owner declares bankruptcy after selling a house on a land contract, that the house goes back to the bank regardless- scary thought! I wonder if the person who told me this meant CH 12 (or 11...I'm trying to remember which one is the one you pay back, and which is for farms, etc.) as opposed to CH 7, which just "disappears" everything...

[mostie]

Sorry, my vocabulary isn't up to par today, lol- I've been packing for dayssss, and I would swear that in the middle of the night?

Our belongings MULTIPLY!

[jeli2657]

I think the land contract market is pretty dry right now because rents have been going up since the economic housing implosion of 2007-2008. Why sell a house on land contract for $800/mo when you could rent it for $1200? And the land contracts that are available are probably by home owners so upside down on their own mortgage, they know they have no way of selling it with a realtor and are trying to fly-by with a land contract sale. You paying $150k for a house on land contract that the seller still owes $230k on is a pretty scary proposition.

I know that doesn't help you, just keep in mind land contracts aren't like what they used to be and be careful.

[jeli2657]

Originally Posted by mostie

You know I just find out a bit ago that if an owner declares bankruptcy after selling a house on a land contract, that the house goes back to the bank regardless- scary thought! I wonder if the person who told me this meant CH 12 (or 11...I'm trying to remember which one is the one you pay back, and which is for farms, etc.) as opposed to CH 7, which just "disappears" everything...

A home owner really shouldn't be selling a house on land contract if they still have a mortgage on it. In fact, I wonder if they legally can at all.

Think about it. How can someone sell the collateral of their loan without violating the loan agreement?

Could you sell your car if you still owed the bank 10k?