Buying A Home On Contract Info

As year six approached, panic set in. What if the house didn’t appraise for enough? What if interest rates spiked? What if Arthur passed away before the deed was transferred?

Arthur, usually a kindly old man, called them three times a day. Under a standard mortgage, a bank has to go through a lengthy, months-long foreclosure process if you miss payments. But under their specific contract—which had a "forfeiture clause"—if they defaulted, Arthur could technically cancel the contract, keep their down payment, keep all the monthly installments they’d paid, and keep the house. buying a home on contract

The old Victorian on Maple Street didn’t have a "For Sale" sign in the yard. It had a weathered piece of plywood with "Land Contract – Inquire Within" scrawled in black Sharpie. For Elias and Sarah, that sign was a lifeline. As year six approached, panic set in

They entered into a , often called a land contract. What if Arthur passed away before the deed was transferred