Buying House on Contract

[NC89GT]

Has anyone bought a house on contract? My fiance and I are looking at a house that we could purchase on contract and fix up while we live in our current house. Just wondering if anyone has had any experience good or bad with it.

Thanks

[04 Venom]

Not sure what you mean. Are you signing a real estate contract to buy it? Are you taking possession of the property?

[Pitbull1052]

most likely owner finanaced, few thousand deposit and a signed contract

[04 Venom]

most likely owner finanaced, few thousand deposit and a signed contract

Gotcha. In that case, I would pay particular attention to the default/foreclosure language if it is seller financed. Also, make sure you have insurance on the property arranged before the deal goes through. For example, a house that has had several claims filed by the PRIOR owner will influence whether you can get insurance and/or how much it will cost. Make sure you also purchase title insurance to guard against a relative of the seller claiming that he/she has interest in the property.

[cstreu1026]

A real estate attorney would worth his or her weight in gold in a deal like this.

[04 Venom]

A real estate attorney would worth his or her weight in gold in a deal like this.

I agree

[Gene]

We bought our house on contract. It wasn't a big deal...like Cameron said, a real estate attorney is worth his weight in gold on this. In our case, we actually already have title and the previous owner has a lien on the property, so essentially it's structured like a normal mortgage except the person we bought the house owns the mortgage instead of a bank.

FWIW, we did this because a lack of job stability during the downturn damaged my credit and we were unable to secure a reasonable mortgage at the time (this was October 2009) Now that things are better, our debts are paid off and my credit is getting cleaned up, we'll be looking into flipping into a conventional mortgage in a year or two. But it was a good opportunity to get into the property sooner rather than later.

My one suggestion is to make certain that you have a good rapport/relationship with the seller. You'll be dealing with this person on issues of money for a while, so if you have any trepidation with regards to potential personality conflicts, find another property.

[cstreu1026]

We bought our house on contract. It wasn't a big deal...like Cameron said, a real estate attorney is worth his weight in gold on this. In our case, we actually already have title and the previous owner has a lien on the property, so essentially it's structured like a normal mortgage except the person we bought the house owns the mortgage instead of a bank.

FWIW, we did this because a lack of job stability during the downturn damaged my credit and we were unable to secure a reasonable mortgage at the time (this was October 2009) Now that things are better, our debts are paid off and my credit is getting cleaned up, we'll be looking into flipping into a conventional mortgage in a year or two. But it was a good opportunity to get into the property sooner rather than later.

My one suggestion is to make certain that you have a good rapport/relationship with the seller. You'll be dealing with this person on issues of money for a while, so if you have any trepidation with regards to potential personality conflicts, find another property.

Very good advice! You don't want to owe a bunch of money to someone you don't get along with.

[Dirtyd0g]

Beware who you do a land contract with get an attorney to look it over. A buddy of mine paid what he was supposed to for nearly 8 years, did all kinds of repairs and dealt with no furnace the entire time. The owner decided he needed the money and sold the house out from under him.
Alan

[1badasp]

A real estate attorney would worth his or her weight in gold in a deal like this.

most definitly.. do your self a favor.

[NC89GT]

Thanks for all of the posts.... I currently own the home I live in now... I owned it outright until my fiance and I decided to use my house to pay off her school loans. She had 9.5% interest on her school loans. The house I am looking at is owned by one of my best friends grandmothers..THere is currently no loan on the house. she moved into a nursing home a few years ago and the house has been for sale for a while. They have come down on price considerably. roughly from 240k to now 125k... I will for sure have it inspected. I have done my fair share of remodeling on an older house.. This house needs wood floors refinished and lots of cosmetics(wall paper removed minor drywall and paint.. has already had new furnace ac windows and roof in last 5 years...

[04 Venom]

Thanks for all of the posts.... I currently own the home I live in now... I owned it outright until my fiance and I decided to use my house to pay off her school loans. She had 9.5% interest on her school loans. The house I am looking at is owned by one of my best friends grandmothers..THere is currently no loan on the house. she moved into a nursing home a few years ago and the house has been for sale for a while. They have come down on price considerably. roughly from 240k to now 125k... I will for sure have it inspected. I have done my fair share of remodeling on an older house.. This house needs wood floors refinished and lots of cosmetics(wall paper removed minor drywall and paint.. has already had new furnace ac windows and roof in last 5 years...

Just make sure you get title insurance in case there is a "disagreement" among the woman's relatives as to who has a legal claim to the property.

[cstreu1026]

and still hire a lawyer. Even your best friend or a family member can become greedy and screw you over.