A real estate land contract is an agreement where a buyer makes payments toward a seller’s mortgage instead of arranging a new mortgage loan. Land contracts usually require you to pay installments to a liaison, who forwards the payments to the seller’s mortgage lender. Complete ownership of the property and title transfer does not become official until all payments are made or until you refinance the mortgage in your name.
Such an agreement usually violates a lender policy, and discovery of such transactions can empower the seller’s lender to demand full repayment of the loan.
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