Posted on: 14th Sep, 2010 05:11 am
I am selling a farm. I will be owner financing the transaction. What is the difference in doing an installment loan or a mortgage? Are the capital gains treated differntly? Also if the buyer fails to pay is one option easier than the other to forclose on or "take back" the land.......I think with a mortgage I would have to sue the buyer to get the land back if default took place...??
Hi David,
As you're planning to owner finance the property, you should sign a contract with your buyer. The contract will include the terms and conditions of the loan. You can take actions against the buyer depending upon that contract if the buyer fails to pay off the mortgage.
Thanks
As you're planning to owner finance the property, you should sign a contract with your buyer. The contract will include the terms and conditions of the loan. You can take actions against the buyer depending upon that contract if the buyer fails to pay off the mortgage.
Thanks