Land contract refinance the note

6 Replies

Hi, I need some guidance with a refinance question. If I sell a property on a land contract and I want to get cash out of the property. Is it still possible to refinance, let say 70% of the property? 

Do you still hold title?  If you do than yea you can.  But lenders may not be to eager.  The new mortgage would be subordinate to the recorded land contract as the loan is recorded after the land contract.   

Try talking to a few loan officers.

Hi Tom, are you 100% sure? I am holding the title. Isn't there a way, lets say I make sure that the loan to the finance is paid for before the land contract ends? Another possibility I am thinking about is to sell the land contract to another investor. I haven't got any experience with this and wonder if there is a market for this. Lest say I have gave a land contract for 100k with 9% interest. The title is still with me. Can I sell this contract, including title to someone for lets say 90k cash? Does anybody know if there is a market for this?

The buyer in a land installment contract is the equitable owner of the property.

If the buyer makes the required payments, by law the seller will be required to sign the deed conveying title to him.

Your original email referenced refinancing... to which I replied "not happening." I really should have said "not happening with a traditional lender." Now you're talking about selling the property. This can be done but the terms of the land installment contract would still control.