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what is the best way to get out of a land contract, is it remortgage or a full out loan.

I am in a land contract, is there a way to get out of it with out losing my home.  my interest rate is 10% and I think it is a bit high...  my credit isn't the best either but I am working on it.
  • October 02 2009 - Indianapolis
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Answers (1)

Remortgaging seems the same as refinancing or a full out loan. Hopefully you will get an eligible credit score soon and your residence appraises at enough value. A land contract is owner financed and should be recorded at the courthouse, if it is not you may have a purchase scenario when you want to get out of the loan. An assumption here is that you took seller financing because of credit issues; it would be good advice for you to choose a loan officer now to assist you and follow your credit repair so when you are eligible you will have the proper evidence and information underwriting is going to require. 10% is a high rate of course but the seller is taking a higher risk and that generally qualifies the higher rate. If you can find another source of private financing for your balsance a abetter rate then for sure you should take it. I hope you are able to evidence your payments to the seller baecause underwriting does not accept private verifications of mortgage (to the extent of my current understanding). Good luck.

  • October 02 2009
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