If I purchase a property under a land contract or contract for deed,
even though I don’t have title to the property can I still go ahead and refinance
and get it all in my name?
Yes, provided you meet the seasoning requirements of your lender!
They may ask you for proof of payments for 3, 6 or 12 months depending on the lender.
You will also have to meet the lenders guidelines: IE Full Doc, Income, Tax Returns, Employment and Reserves.
Thank you Gold River, that’s an information I didn’t have.
In addition to the information that Gold River listed…MAKE SURE that you pay by check when making payments. This will provide you with a verifiable payment history. Lenders will generally want to see a 12 month history and written receipts and money order stubs will not be accepted.
Thank you Mdhaas, but the next question I was supposed to ask was,
is the property mine to the point where I can also sell it?
My understanding of a land contract is that you don’t own the property, you control it. Because you have an equitable interest in the property, you can refinance to pay off the land contract. Land contracts can vary from state to state. But I think if you want the right to sell, lease etc…, you have to specify that in the contract.
With a land contract you do own it. You just have title with a lein on it similar to a car loan. This is an installment sale. Herbster
So Herbster, because I don’t own it I can’t refinance or sell it right?
Bytheway, does anyone know where I can find a book on buying with land contract?
Thanks in advance.
investorguy, You do own it. The title just isn’t clear until you pay it off. You can resell but might need the permission of the Note holder. The book is here in free ebooks and audios. Its from a sellers standpoint but well worth the read. Its call Owner Will Carry.Herbster