Need to Sell House - How Does Land Contract and Owner Finance Work?
Hi. I need to sell my house which has a current mortgage. I have had no luck in the 5 years that I’ve had it for sale and I’m getting desperate. I am not in defaut and all payments are current. I’m willing to consider a land contract or owner financing, but I don’t know the specifics of which option is the best and how they work. Can anyone give any insight?
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Tags: current mortgage, defaut, insight, land contract, owner financing, specifics
November 7th, 2009 at 9:46 am
Most loans have "due on sale" clauses which came about in the 1980’s when interest rates were rising and banks didn’t want people to assume low interest rate loans. Although technically a bank can call your loan is you sell via owner financing, they probably will not (unless interest rates rise again). See the source below for more specifics about how to use a Land Contract