Benefits and Drawbacks MN contract for deed
Benefits for contract for deed
- Both the buyer and the seller can make substantial savings in Closing Costs
- The contract for deed buyer can Negotiate interest rate, repayment schedule, and other conditions of the loan.
- The cd buyer can request special conditions for the purchase, such as inclusion of Household appliances.
- The borrower does not have to qualify with a loan underwriter.
- There are no PMI insurance premiums unless negotiated.
- The seller can receive a higher yield on his/her investment by receiving equity with interest.
- The Mn seller could negotiate a higher interest rate.
- The seller could negotiate a higher selling price.
- The property could be sold “as is” so there will be no need for repairs.
- The seller could choose which security documents (mortgage, deed of trust, land sales document, etc.) to best secure his/her interest until the loan is paid.
Drawbacks to a contract for deed
- The buyer could pay the loan in full but still not receive title due to other encumbrances not divulged by, or unknown to the seller.
- Solution. We recommend title insurance to prevent these type of situations.
1.The buyer could make payments faithfully, but the seller might not make payments on any senior financing that may be in place, thus subjecting the property to foreclosure.
- We put information on the MN contract for deed to help protect the MN home buyer from this type of situation.
DO NOT ENTER IN A CONTRACT FOR DEED WITH OUT USING A TITLE COMPANY OR LAW OFFICE. IF YOU USE A LAW OFFICE MAKE SURE THE BUYER HAS A LICENSED REALTOR OR LAWYER GO OVER THE CD BEFORE CLOSING.
The buyer might not have the protection of title insurance, or an appraisal to ensure that he/she is not paying too much for the property.
We also recommend getting a home inspection and title insurance
- The seller might not get the buyer’s full credit or employment picture, which could make foreclosure more likely.
- Depending upon the security instrument that was used, foreclosure could 90 days after the 60 days cancellation law in MN.
The seller could agree to a small down payment from the buyer to assist in the sale, only to have the buyer abandon the property because of the minimal investment that was at stake. We recommend 10% down of the sale price to sell a home contract for deed in MN or Wisconsin.
Contract for deed buyers can close on a property within 10days if they choose to. Closing could be faster if they choose not to do a home inspection that usually takes a few days to be completed along with title work.
YOU WILL FIND HUNDREDS OF CONTRACT FOR DEED HOMES FOR SALE IN MINNESOTA AND WISCONSIN
Here are some of the counties you will find homes
ANOKA-RAMSEY-HENNEPIN-WRIGHT-SHERBURNE-CARVER-SCOTT-DAKOTA-WASHINGTON-PINE-ISANTI-CHISAGO- TWIN CITIES METRO AREAS.
What types of properties will I be able to puchase with Bad credit?
Condo-town homes-single family real estate-hobby farms-cabins-Mn lake house-river front properties-
lofts-flats-acreage-acres-farm-hobby farm you name it you can buy it if it is available in the buyers price range and county or city they are seeking to live in.
Rent to own-leasing-Wrap around Mortgages- What is best for me?
Minnesota rent to own is renting till a future date in which the renter would buy the home for a set price.
This is a good option if the renter or potential buyer does not have 10% down of the sale price to purchase a home cd.
Remember renting to own does not give the renter the benefits of writing of the contract interest like a mortgage or land contract in Minnesota.
We recommend if the renter/buyer has enough money they buy the house than rent the property a better deal for them-plus ownership rights.