Check out some similar questions!

moorean4 · Jun 1, 2011, 08:36 AM

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 · 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 · 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 · 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 · 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,