Contract For Deed Or Land Contract Essay

826 Words 4 Pages
he recession of 2007 was a wake-up call to not only American lenders, the government and the financial system, but for thousands of homeowners as well. It was unfortunate for borrowers, many of which lost their homes. However the past is the past, and it’s time for their lives to move forward. Although their dreams of these families have been bruised, there is chance for restorations, and many options that they can take to make homeownership a reality again.

1) Contract for deed or land contract: The boomerang buyer would pay the owner a regular payment, slowly paying off the contract. The landowner holds the title to the house until it is paid in full. However, the buyer would hold an equitable title, which gives them most every right of ownership of the house. This may be a good option for new, or boomerang homeowners because it gives them a chance to own a home without traditional financing. The boomerang buyers will also be able to deduct the interest, and property taxes on their income taxes.
2) Rent-to-own or lease option: The boomerang buyer would pay rent for a house, and have the option to buy it for a set period of time, for a set amount. The contract may be written to include a reduction in purchase price by a set amount per month that the place was rented before the purchase. This is a good option, as it gives buyers time to reconstruct their credit during the period of the option. Oftentimes, if real estate prices are increasing, this is a great option simply…

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