Land Contract/Owner Financing

[richelledunaway]

What is the name of your state (only U.S. law)? KY

I need to know how to go about selling my home on contract.

I currently pay mortgage, taxes, and insurance in one payment.

If I sell the house on contract, would the buyer's then be responsible for taxes and insurance just like they would if buying from the bank?

And if so, how can I be sure that the buyers are indeed maintaining homeowner's insurance and paying the taxes?

 

[LindaP777]

I would recomend selling your house on a lease with option to purchase (my preferred method) or owner financed.
Keep the deed in your name (because eviction if faster and cheaper than a foreclosure) until they close.
You pay the mortage taxes & insurance (so you know that they are paid).

 

[nextwife]

What is the name of your state (only U.S. law)? KY

I need to know how to go about selling my home on contract.

I currently pay mortgage, taxes, and insurance in one payment.

If I sell the house on contract, would the buyer's then be responsible for taxes and insurance just like they would if buying from the bank?

And if so, how can I be sure that the buyers are indeed maintaining homeowner's insurance and paying the taxes?

You HAVE a mortgage? Unless you either have a mortgage without a due on sale, OR you intend to pay off the mortgage before you owner finance ot do an LC, it would not be allowable to transfer the property to another party. Owner financing is not allowed when the underlying mortgage prohibits it.

 

[HomeGuru]

What is the name of your state (only U.S. law)? KY

I need to know how to go about selling my home on contract.

I currently pay mortgage, taxes, and insurance in one payment.

If I sell the house on contract, would the buyer's then be responsible for taxes and insurance just like they would if buying from the bank?

And if so, how can I be sure that the buyers are indeed maintaining homeowner's insurance and paying the taxes?

**A: if the mortgage lender approves of the sale, the monthly contract payment should include the interest (and principal if any) AND the real property taxes and insurance.