Crucial Points On Why You Should Love Land Contracts
Whenever I see the look on the smiling faces of the families or individuals who have just realized that they are now going to be able to move into their chosen home, I break out with a wide smile as well. I really love land contracts for the opportunities that they represent. For many, buying a home with poor credit has seemed like an unattainable goal and the pressure of carrying this depression around with you on a daily basis can really show, especially in young families. It makes my heart ache to see these individuals go from pillar to post, from bank to mortgage broker, trying to find an option to help them do the right thing for their families. It may be that they just don’t have enough money to put down as a down payment, or other reasons beyond their control may lead to difficulties, maybe the loss of a career job due to the recession? It doesn’t take long for your previously good credit scores to take a dive when you are faced with a job layoff or similar consequential event. Credit ratings take a lot to build up and very little to break down.
When you see first time home buyers with bad credit opening the door to their new starter home, you can see why I love land contracts. From that moment on, they are doubly motivated to make ends meet, fully understanding that they are moving into a home of their own, getting away from the payment of somebody else’s mortgage and responsible for the creation of new beginnings.
For as long as anyone can remember, buying a house with poor credit has never been easy and with the onset of the great recession it has become virtually impossible. I love land contracts because they offer a new ray of hope to individuals and families who had virtually given up hope of moving into their own home. Land contracts bring together motivated entities – the seller wants to sell and the buyer wants to buy. This is a good place to start, and from here negotiations can often set the repayment terms and conditions palatable to both parties.
I love land contracts because I hate to hear the word “no” being uttered by bank officials who have to stand behind corporate rules and positions. Very often these well-meaning individuals have no choice but to make the decisions that they do, due to corporate restrictions and the fact that the banks are really almost afraid of their own shadows these days.
I recently saw a young couple move into their dream home in Grosse Pointe, Michigan and could not get over the look of elation on their faces. This is why I love land contracts and always advise people considering this option to make sure that they are very careful when putting this all together. It’s important not to let your anticipation get the better of you and you should always make sure that the contract is legal and above board and that all parties are aware of and can realistically achieve their responsibilities.
