Why should I use The Land Contract Store to sell my house?

The short answer: The Land Contract Store makes it easy to attract buyers, and takes the worry and hassle away by managing the contract. We coordinate a land contract or lease/purchase option that is legally sound and iron-clad, then we take over the monthly duties of collections, payments, tax documents, late payment issues and all of the ongoing responsibilities.

You get paid, and rest easy knowing The Land Contract Store is doing all of the complicated dirty work for the months or years to come.

Here are the specifics:

First, we make sure you're ready to sell before you begin negotiating a deal with a buyer.

The Land Contract Store takes into consideration the principal & interest portion of your current monthly mortgage on the house you're selling, then accesses the precise tax figures for that property and the estimated insurance payments. Then, using that information, we develop a series of Rate & Term Scenarios that ensure you'll be receiving the amount of money you need, or want, each month for the term of the contract. Without the Rate & Term Scenario calculation sheet we provide you, you'll be negotiating blindly. (Click here to view sample of Rate & Term Scenario sheet)

Note: It's not infrequent that a seller will come to us with a "Done Deal", only for us to discover that if they proceed with the agreement they've already reached with a buyer, they'll actually lose a substantial amount of money each month. These sellers didn't intend to set up a deal like that, but they didn't know better. The calculations needed to arrive at the proper figure can be complicated. Contact The Land Contract Store before you begin talking with a buyer.

Advertising on our website attracts the thousands of buyers who could have been financed by a bank this time last year.

When you advertise your home on our website, you’re house is being viewed by the thousands of people who’ve been shut out of the market by the crisis in the mortgage industry. Our television, radio, print and billboard advertising draws these people to our website-- people who need to buy a home, and who need to shop for homes that the owner is willing to sell on land contract or lease/purchase option. No other service provides such widespread advertising to attract buyers for your home.

Who are these people?

People who might not have a large enough down payment to satisfy bank requirements. This is one of the most common reasons a bank will reject a mortgage loan application. With the most recent tightening of lending standards, most banks will not even consider a loan application if the buyer doesn't have a down payment of at least 14.5%. Buying on land contract or lease/purchase option provides the buyer increasing equity over time, which is seen by banks as a form of down payment when they later apply for a bank mortgage.
The self-employed. Banks frown on lending to people whose income is difficult to verify because they’re self-employed.

People who haven’t been working for the same employer for a sufficient amount of time. Banks frequently won’t lend to someone who hasn’t been on the same job for at least one year.
People with a few “dings” in their credit, and who need some time to improve their credit and get a mortgage loan from the bank.

What does The Land Contract Store do after I’ve found a buyer?

This is where The Land Contract Store makes your life a whole lot easier for a long time to come.

The Land Contract Store will help you with creating the terms of your agreement with the buyer, and finalizing the arrangement, including the closing. Then we’ll collect the monthly payments from the buyer, and pass the payments on to you. We will automatically deduct the monthly installment from the buyer's bank account, and electronically deposit the payment in your bank account. We can also receive payments and remit them to you via The United States Postal Service.

The Land Contract Store will escrow the buyer's property tax and insurance premiums (and, if you're selling a condominium, the condo association fees) and then The Land Contract Store maintains responsibility for payment of those items.

We also provide yearly interest and amortization statements to both the buyer and seller for tax purposes.

Maybe the greatest service we provide to you is collections. No one likes to act as a bill collector, so we do that for you. If a payment is a few days late, we mail late payment notices, with copies sent to you to keep you abreast of the situation. If the payment is not received shortly thereafter, we make the collection telephone calls to every contact number we have on record for the buyer. Again, we will contact you with the results of our attempts to collect a late payment.

To ensure your privacy and peace of mind, your buyer will sign a document at the closing specifying that all future communication regarding the account will be between the buyer and The Land Contract Store, and that the buyer will not attempt to contact you regarding a late payment.

If the buyer fails to make their payments or otherwise fails to live up to the terms of the land contract, The Land Contract Store will coordinate with an attorney the filing of court action against the buyer. That includes forfeiture, foreclosure and eviction if necessary.

Doesn't my house have to be paid-off in order for me to sell on land contract?

No. Almost all of our clients still have mortgages on the houses they've sold on land contract.

However, many existing mortgages have a “due on sale” or "acceleration" clause, whereby the lender (bank) retains the right to demand that you pay your current mortgage in-full if you sell your house on land contract, even though the deed has not been transferred.

Nearly all banks will waive the "due on sale" or "acceleration" provision if you obtain permission from the bank beforehand and let them know what you intend to do. Your bank is more likely to permit you to sell on land contract if you use the professional management services of The Land Contract Store.

The Land Contract Store has a special legal document, developed with the help of bank executives, which we will present to your bank for this purpose. Contact us, and we'll help you get the "OK" from your bank.

While we were assembling the package of services of The Land Contract Store, we talked with many bank presidents and other executives and found that the banks rarely, if ever, exercised the "due on sale" or "acceleration" clause option. As long as you keep your payments current, they're satisfied. Moreover, with foreclosures at historic levels, the last thing a bank wants is to own another house.

Who decides whether I should sell my house to a particular person on land contract?

You do.

As our client, The Land Contract Store will do all the research on the prospective buyer and pass the information on to you. We’ll provide you, or your realtor, with the buyer’s credit report, monthly income information, employment verification, current debt, and a calculation called the Debt Ratio. The Debt Ratio is a formula used by banks to determine if someone earns enough money each month to afford the monthly payment on your house and pay their current bills.

By law, we cannot advise you on what to do; we can only provide you with the information. Your realtor or financial advisor should be consulted with any questions.

Who pays The Land Contract Store's monthly management fee?

The buyer does.

The monthly management fee is based on .1% of the sale price of the home. For example, if the sale price is $125,000, the monthly management fee will be $125. The minimum monthly management fee is $50, and the maximum is $140. This is less than the buyer would be required to pay for Private Mortgage Insurance (PMI) if they were able to obtain a bank loan with a down payment of less than 20%.

The management fee is added to the buyer's monthly payment just as a PMI premium would be.

Can I use The Land Contract Store if the house I'm selling is outside of the state of Ohio?

Yes. The Land Contract Store has coordinated and now manages dozens of seller-financed home sales from California to Florida to New York, and many states in between.

Can I work with The Land Contract Store if I didn’t advertise my home on your website?

Yes, but we recommend you contact The Land Contract Store before you start negotiating the sale price and terms of the agreement. The calculations necessary to arrive at the right monthly installment amount can be tricky. We'll help you calculate that figure, so you have that information as you negotiate with the buyer.

Am I obligated to sell my house on land contract or lease/purchase option if I advertise on your website?

No. If you can find a buyer who wants your house and can get a mortgage loan from a bank, our recommendation is count your blessings and reach an agreement with that buyer.

What if I’ve already sold my house on land contract, and I want The Land Contract Store to take over managing the contract?

Providing the existing land contract is legally sound, and you pay a modest setup fee, The Land Contract Store will manage the contract for the duration of the contract.

If your existing land contract does not meet our legal standards, we’ll coordinate, with an attorney, re-writing the contract, and filing it with the county recorder or any other government agency that the law requires.

Do I have to record the land contract?

Yes. There are no exceptions.

This is for two reasons:

It's the law.
It benefits both seller and buyer. Recording the land contract is viewed favorably by banks, and increases the likelihood that your buyer will be able to obtain a mortgage loan from a bank even earlier than your contract requires.

While land contract and lease/purchase option sales are becoming more common, it would be impossible to answer every question on this website. We welcome your questions at any time.

To find out more, call

(419) 787-5299

or email us at info@landcontractstore.com