OfflineI have an opportunity to purchase some VA properties (veteran's) with installment contracts already in place. The thing is, I don't know too much about installment contracts. I've done a search and there weren't too many results. If its in one of the books, can someone direct me to the right chapter? If anyone has any knowledge of them, or how they work, any info would be greatly appreciated! Thanks!
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This is just another word for Land Contract. The VA installment contracts are usually not assumable unless you are a veteran. I'm buying a VA house now on Land Contract, but the VA really doesn't want to know about it. They could call the note due in full at any time. I don't mind, cause I just took over payments from a guy who was going to lose the house and should be able to get a loan to pay off the note if I have to. Lots of equity.
This is just another word for Land Contract. The VA installment contracts are usually not assumable unless you are a veteran. I'm buying a VA house now on Land Contract, but the VA really doesn't want to know about it. They could call the note due in full at any time. I don't mind, cause I just took over payments from a guy who was going to lose the house and should be able to get a loan to pay off the note if I have to. Lots of equity.
lyrehc_2 is right it is anotehr term for a land contract or contract for deed. The definition is "a contract drawn between a buyer and a seller for the sale of property, in which ownership of the property is not transferred until all the payments have been made." The key to keep in mind is that title is not transfered, so it is not like other types of seller financing where the title is transfered. You are assuming a higher risk, because you are not listed on title, but you might record a memorandum or something like that that states you have rights to the property in case the current person on title decides to sell it out from under you or something like that. In most cases, you will not have to worry about it, but it is always best to protect yourself from these types of circumstances.
A lease is renting the property and does not involve a purchase agreement like what you have with an installment agreement. You only have rights to occupy it unless you also execute an option, then you have the right to buy the property at a later date and time. The installment agreement is completed right then and there and the property has been sold, but without the transfer of title. Does that make sense? Similar, but different approaches. In both cases, you still would make payments over time on the property.
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