Ask Experts Questions for FREE Help !
Ask
    moorean4's Avatar
    moorean4 Posts: 1, Reputation: 1
    New Member
     
    #1

    Jun 1, 2011, 08:36 AM
    Land Contract in Michigan Question
    Is is legal for the owner of a house to offer a land contract to sell the house if the owner still has a mortgage on the house?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
     
    #2

    Jun 1, 2011, 08:44 AM

    Hello m:

    Sure. Title isn't transferred until the contract is fulfilled. When that happens, the seller should have clear title to transfer...

    excon
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
     
    #3

    Jun 1, 2011, 12:27 PM
    This is at the discretion of the lien holder, the bank/lender holding the mortgage. Your name may be on the deed, but when you first buy a house, you really own maybe the first 2 steps, and are paying mostly interest for several years - and that's if it's a conventional loan.
    Land contracts can be risky business, involving people with poor credit who move in and can't pay, and both buyers and sellers who don't follow safe guidelines.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #4

    Jun 1, 2011, 04:42 PM

    Since a contract for sale doesn't trigger a change of ownership until the contract is up, most of the time the lender would not have a say. It depends on how the mortgage was written.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
     
    #5

    Jun 1, 2011, 07:01 PM

    For the buyer you are at serious risk, since if the mortgage is not paid, and the loan defaults, the lender can do a foreclosure and the (contract for deed) buyer will just lose any and all money paid. *** they can of course sue the seller but if he has lost the home, most likely he has nothing to sue for.

    This is happening more and more and more,

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Land contract in Michigan [ 8 Answers ]

Does a land contract need to be notarized to be recorded in Michigan and what if it isn't notarized or recorded is it still a legal binding document?

Michigan land contract laws [ 2 Answers ]

When selling on a land contract can you put in the land contract that the buyers can not sell on a land contract until there land contract is paid off ?

Michigan land contract laws [ 1 Answers ]

I am buying a home on a land contract in Michigan,the contract holders have not paid the taxes or the insurance on the home as it is required it the contract,what can I do about this.

Michigan Land Contract RIghts [ 2 Answers ]

I am looking into buying 50 acres of land in northern Michigan and the seller is willing to enter into a land contract, which I am OK with. My question is, as the buyer of the land, what legal rights concerning the parcel would I have as soon as I enter into the contract? For example, could I do...

Michigan Land contract - Buyer [ 13 Answers ]

Land contract started June 1992. $1500 down, $24,000 left to pay, 10% interest, $300/month. It has been 16 years so we asked for an itemization of all payments and the seller keeps giving us the run around. It has been months now and they just keep saying call next week, we are busy. They also...


View more questions Search