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Private Lending & Conventional Mortgage Advice

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Michael Miller
  • Kalamazoo, MI
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35
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Buying a House From a Land Contract Vendee

Michael Miller
  • Kalamazoo, MI
Posted Jan 29 2015, 17:01

I scoured the interwebs but couldn't seem to come upon an answer to a simple question.  While not substituting for legal advice, can anyone tell me if, (in the state of Michigan or generally, I could take out a conventional loan on a house which is currently under land contract.

The story: Vendor for land contracted house created the 20 year note last year.  The purchaser (vendee), who is a friend of mine, had to move away for work. My friend offered the home to me at a significant discount.  I haven't got cash for it.  Can I take out a conventional loan for it?  I assume I would nullify the vendee's claim and pay off the vendor at the same time.  Is this correct?

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