Real Estate Investor · Grand Rapids, MI · Member since 2014 · 85 posts · 13 votes
Does anyone know of a good marketplace or medium to use to sell a land contract? I hold an LC note, owes about $28,000, 3 year balloon payment...6% rate. Any advice would be helpful.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
I'd really suggest you get that contract converted to a note and deed of trust with your borrower. LCs have significant issues to sell the property subject to the LC so that the new owner can convey title, and the deeds you executed in escrow may not be accepted now, so I'll skip the details, just follow what I mentioned. Use a RMLO id it's owner occupied.
Your LC may not be compliant, worse than a NPN.
Contact the usual note buyers, check with annuity and those who buy out judgments, they may have an appetite for that annuity payment.
You may be able to simply borrow pledging the payments, might do better that way.
Since CFD/LCs have been hammered, they are less marketable, meaning you'd take a real hit on the discount, you can save money by curing the issue yourself, getting a compliant note and deed of trust or mortgage with a Sub-To transaction if necessary. Good luck :)