These days it seems that wherever we turn, we hear the word “foreclosure,” it’s on the news, in the press and in one way or the other, seems to affect somebody that we know personally and people in all walks of life. Foreclosure is a really nasty experience and can lead to some very sleepless nights. You can worry so much about the situation that it seems to be all-encompassing and you cannot focus on anything else. You could suffer from “knock on” effects in the workplace and in other areas of your life, enduring problems with your own family. Foreclosure can be a sordid process, but it also presents opportunities for those who are looking to buy properties at a relatively significant savings.
If you are in the market to move, you might be intrigued by what is available within the foreclosure market. Many times people don’t have cash at hand to pick up a foreclosure home, or their credit score may not be high enough to allow them to turn to conventional lenders for help. You won’t be having much fun if you’re buying a home with poor credit and you can go around in circles if you’re not too careful. If you currently occupy a rental property, are living with friends or family, or may be one of those first time home buyers with bad credit, you might be looking at the homes available in your area that are under foreclosure. You know that it’s possible to buy at a steep discount and wish you could qualify in one way or the other.
The answer to your prayers may come in the form of a land contract. A land contract is typically a much simpler contractual affair, taking place almost directly between the buyer and the seller and not dependent on stringent and often punitive regulations and conditions set out by conventional lenders.
In Michigan, land contracts are very commonplace and there are certainly a lot of them available in and around Detroit, as an example. If you live in this area you are all too aware of the problems that the slowdown in the automobile industry has caused and how this has created a particularly difficult real estate market. There are many foreclosure opportunities around and there are many opportunities to enter into a land contract. If you’re buying a house with poor credit, look for these deals and you will invariably find that you can negotiate rather nicely with the seller. Almost always, the seller is as motivated as you are and through a sensible and careful contract negotiation, when both parties are entirely aware of what they are doing, much can be achieved.
Education is paramount and before you enter into a land contract, find out what there is to know about the title and history of the property. Always make sure that you can meet the repayments you are talking about and you are highly advised to consult with an independent land contract expert to provide an unbiased review of the deal you are considering. If you look carefully, you will find that there are more opportunities available to you than you once might have thought.
