Does anyone have a strategy on how to buy a property with an existing mortgage through a land contract? I've read getting the mortgage lender's permission could be key, but any other suggestions?
In many cases the mortgage lender may never know there was a land contract sale. In Michigan, all that is recorded for a land contract is a memorandum. The lender is not notified of that recording and if all the mortgage payments are made on time it is unlikely they would look for it. The lender would be notified if there are any changes in the homeowner's insurance policy. (It may be possible to maintain the existing policy.) Of course, the land contract sale could trigger the due on sale clause and both parties should be aware of that and have a strategy in place if it were to occur. You could ask the lender's permission to sell a home that secures a mortgage via land contract but it is not likely you would get it.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing