This economy has not been kind to potential home
buyers across the socioeconomic spectrum, but none have
been hit harder than working class city dwellers, wishing
to quit renting and have the opportunity to own their first
home!
The problem, however, facing many is that, even with a steady job, and a decent rental history, credit scores have suffered, dramatically. Coupled with the fact that banks and other traditional sources of mortgage financing have made their qualification standards more and more stringent,many find themselves seemingly stuck between a rock and the proverbial "hard place"!
Enter, the Seller-Financed, Installment-Sale purchase. Also
known as a "contract-for-deed", or "land contract", these
transactions are structured such that, once the buyer comes
up with the down payment, the seller accepts the balance of
his equity in monthly payments of principal and interest,
until the contract is fully satisfied.
This can occur over the term of the contract, as the debt is fully amortized, but more often than not, the buyer finds himself in a position to either sell or refinance within five to eight years. In any event, all the while the buyer proceeds to pay down the contract, he is in a position to enjoy all of the benefits that come with traditional home-ownership, including principal reduction, equity-appreciation, and tax benefits!
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