Credit Check / Land Contract
We have a couple that wants to buy our rehab property. The have talked to loan officer & I thought everything was going fine, he said he was approved. But, today I talked to him and he said he wants to do land contract paying us $20,000 now and remaining amount in 6 months (he is receiving lawsuit settlements). Now, I'm wondering about his credit. He said he was tired of messing around with the loan officer and it was taking the loan officer too long. I guess if he can pay us $20,000 upfront, he's not going to default on us. Would you do a credit check on them? How difficult is it to do one? Is there any problem with doing a land contract like this? I wish he would just get a bank loan so we could be done with it, but if we have to, we will do the land contract. Thanks.
You bet I'd get a credit report on buyers so I'd know what their credit scene is.
Further, if it's not in your best interest to carry the note, tell the buyers that they either proceed as originally agreed or you're moving on to another buyer.