Buy vs. Rent: An Update

[Toby629]

When we bought our house through land contract, the owner also owned his home outright. We had an attorney draw up the land contract and the owner had his own attorney, who after we submitted our contract to them made a few changes and when all parties finally agreed, the contract was signed by both parties. The great thing is you and the owner are in control of what you both want in the contract. If we would have defaulted on paying on the house, the owner would just foreclose on us. We paid the property taxes and house insurance, these were stipulated in the contract. Our contract stated that the land contract was for five years paying the owner directly, and at five years we would then finance through a bank so they could get full payment on the house. They were elderly, and that was the selling point for them that the land contract was only for five years, they then got their money from the bank, and everyone got what they wanted. So really, land contracts are great that way, drawn up to satisfy both the buyer and seller. As long as you both can come to an agreement on the terms of the land contract, it's a win/win for both parties.

[discouraged]

Well Tobee, if I am ever lucky enough to be in that situation again, I know EXACTLY where to come for help with the contract!

Have you ever thought of that? Starting a business that helps people write and draw up the contracts? Sounds like another win-win situation you could get into, especially if these are coming back.

Oh, and I am so excited about your getting the house! Envious, but very excited and happy for you and your DH.

[tobee43]

When we bought our house through land contract, the owner also owned his home outright. We had an attorney draw up the land contract and the owner had his own attorney, who after we submitted our contract to them made a few changes and when all parties finally agreed, the contract was signed by both parties. The great thing is you and the owner are in control of what you both want in the contract. If we would have defaulted on paying on the house, the owner would just foreclose on us. We paid the property taxes and house insurance, these were stipulated in the contract. Our contract stated that the land contract was for five years paying the owner directly, and at five years we would then finance through a bank so they could get full payment on the house. They were elderly, and that was the selling point for them that the land contract was only for five years, they then got their money from the bank, and everyone got what they wanted. So really, land contracts are great that way, drawn up to satisfy both the buyer and seller. As long as you both can come to an agreement on the terms of the land contract, it's a win/win for both parties.

sounds extremely feasible considering today's market.

our situation is a bit different in the fact the owner just will be holding the first and he will actually be having a broker service the loan....kinda like a bank. however, of course, if we fail to make payment, as in any type of mortgage agreement he most certainly can foreclose on us.

[tobee43]

Well Tobee, if I am ever lucky enough to be in that situation again, I know EXACTLY where to come for help with the contract!

Have you ever thought of that? Starting a business that helps people write and draw up the contracts? Sounds like another win-win situation you could get into, especially if these are coming back.

Oh, and I am so excited about your getting the house! Envious, but very excited and happy for you and your DH.

thank you...you are so sweet!!!

there are a few things we have been thinking about with respect to starting a business....already we have a few things in the "works" and hopefully if we get some things ironed out if we decide to go back to work it will be for ourselves...

you will be back on "top" again...it's just time in the way and remember for now at least THAT's still free..

[ryan]

Tobee43, I meant to say "Congratulations" on your new house!!! thats pretty exciting. I have actually thought about, if I want to get another house again, I would look to assume an existing mortgage. I know there are a lot of those out there with little equity at all so, it would take little cash to take over the loan.

[tobee43]

Tobee43, I meant to say "Congratulations" on your new house!!! thats pretty exciting. I have actually thought about, if I want to get another house again, I would look to assume an existing mortgage. I know there are a lot of those out there with little equity at all so, it would take little cash to take over the loan.

thanks so much ryan!!! i so much appreciate you well wishes....


when toby talked about "land contracts".....that's a viable option today!! don't forget about it!