Buying or Selling a Home/Land Contract problems
sympatico58 wrote at 2013-03-29 14:57:08
Land contracts can be bad for both seller and buyer. I bought a foreclosure house - with a concrete slab foundation - where the previous owner had bought the house on a contract from the older lady (widow) who had mortgage on house. The entire situation deteriorated because the widow did not do a thorough background check on the buyer. It turned out that he had judgments against him all over town, at numerous apartment complexes and he was also being sought for paternity by the State, in a child custody/paternity situation. Upon reading the abstract of title on the property,it almost appeared as though the contract buyer deliberately bought the house to put himself into so much debt that people could not collect on the other debts, judgments, and the State paternity suit. Lesson: Do a background check, pay for a professional background check - to especially look for liens, judgments, and other debts.
That said - it brings up the main point, that people who look to buy a house on a contract usually have some reason why they cannot get a traditional loan through a bank. They expect an individual, private homeowner to do what a bank will not - take on extreme risk, give away their house,to someone who might make one payment and then not make any more payments but attempt to continue to live in the house, forcing forfeiture and eviction - all costly to thehome owner.
Incidentally, my house has a slab concrete foundation and it is not coming away from the slab and does not flood with every rain. The previous owner did not fix a broken kitchen drain. I bought the entire mess as a foreclosure, fixed all the plumbing and my concrete slab is fine. No flooding from the ground with rain.
Selling a house on a contract, or buying a house on a contract, can be a heart-breaking experience for both sides. I have every sympathy for the buyer above who feels he lost in a heart-breaking situation. But good judgment goes a long way in the first place. Sometimes you are just not ready to buy. Get your finances in order before buying; get your debts cleared up before buying a house. Buying a house is a tremendous burden, no matter what way you do it. Work at your job, first and foremost, earn your paycheck, and other things will work out better in the long run. And don't buy things that you don't have the money to pay for.