[reformedliberal]

Weren’t changes made years ago to contract-for-deed arrangements? They were common back in the 70s and people made fortunes by taking the properties back after the buyers failed to come up with huge balloon payments, then the sellers started all over again with new *buyers*.

I thought I recalled that the entire arrangement had been made illegal? Can’t remember.....

[org.whodat]

No and no, maybe some state law somewhere, but it is legal as far as I know. Crooked land agents sell property all the time like this using a common right of way. Problem is if you have a common right of way it is almost impossible to bank finance. Red flag, x amount down and balance over x years, no credit check. Same thing as saying here sucker, here sucker.

[goat granny]

Buying on land contract is for the stupid....all you do is pay interest for 5 years and then balloon payment after that. I was warned by my parents when I got married about the pitfall of land contracts...Land contracts were for buying land, usually cheap and payment at the end. Not to buy a house on...thats why they were called land contracts...Not new, they go back to the turn of the century 20th century or even earlier...Warned all my kids also when they became adults...no one in my era took out second mortages or withdrew equity. Thats what kept a roof over your head. Starting in the 80th, withdrawing equity became somewhat normal...even without the fanny and freddy fraud. I never could understand doing such a thing...having a home kept you out of the street...

Like the old saying....be it ever so humble theres no place like home.......

[arthurus]

Those deals weren’t all bad. I got some property that way which I have refused to sell to pressure several times. Of course, I paid 55% up front and paid it off quickly. I couldn’t do a bank deal because I had never borrowed money or gone into any debt before. That made me ineligible for a bank loan.