Posted on: 20th Jan, 2010 07:37 am
explian land contract and mortgage deed of trust
A land contract is a contract between a seller and buyer of real property wherein the seller provides finance to buy the property for a certain purchase price and the buyer pays off the loan in installments.
A mortgage deed of trust is a document which represents the agreement between a lender and a borrower to transfer an interest in the borrower's property to a third party, also known as a trustee, to protect the payment of the debt by the borrower.
A mortgage deed of trust is a document which represents the agreement between a lender and a borrower to transfer an interest in the borrower's property to a third party, also known as a trustee, to protect the payment of the debt by the borrower.
When I bought my house with a Land Contract, I purchased it directly from the homeowner who had the original mortgage on the house. I paid the original owner my monthly mortgage payment, and he paid the Lender his monthly mortgage payment.
