What's The Best Way To Collect Payments,etc. With A Land Contract?
I'm considering doing a land contract on a home I own. This would be the first time I have tried this method. Any ideas of the best way to collect payments, and make sure taxes and insurance are paid? I've thought about having my PM do this but I wonder if there are companies that handle this just as there are companies that pay the taxes and insurance for mortgage companies.
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On 2004-06-30 17:24, davmille wrote:
I'm considering doing a land contract on a home I own. This would be the first time I have tried this method. Any ideas of the best way to collect payments, and make sure taxes and insurance are paid? I've thought about having my PM do this but I wonder if there are companies that handle this just as there are companies that pay the taxes and insurance for mortgage companies.
* Have an attorney draw up your contract unless you are doing a Note and Trust Deed and then you can just instruct the title company to fill in the blanks. Then have a collection escrow opened at the title company. Your buyer will make payments to the title company and the title company will send a check to you each month. There is a charge for this. Remember to have a title search done and go through the escrow process like a regular sale. Also, get a credit report done on your buyer and ask for enough money down so your security iis covered in case of default.