Selling Seller Fi on Land Contract vs. Note/Mortgage
Hey guys! Was wondering what the main difference is between a land contract and note/mortgage sale (benefits, negatives). When it comes to the actual financing terms (ie. length of loan, interest percentage, etc), both a land contract or note/mortgage can accomplish the same thing. With a LC, deed stays in seller's name until note is paid off, in note/mortgage, dead transfers to buyer and lien is placed on the property via the mortgage. If the the buyer were to default, with note/mortgage you would foreclose on them, and at least in IN, to my understanding, one would have to go through the same process with a land contract buyer (as opposed to just evicting them), mainly due to large interest acquired by the buyer during the time they paid down the note. So in this regard, they're very similar.
So for those with experience, what would be the reason you would choose one structure over the other? I've heard note/mortgages are "cleaner," and that it is also easier on the back end to sell the note to note buyers if it's structured as a note/mortgage, as they prefer it (I am ignorant as to why). What are the main pros/cons to weigh when considering either route? Are there benefits to each in different scenarios, and thus they should be considered on a case-by-case basis?
@Joe Villeneuve any thoughts?? I'm sure you're a knowledge bank on this one :P