Demand for land contract in the Dearborn
With more immigrants settling in the Dearborn area, the demand for land contract is more than doubling.
Land-contract buyers, who either want to avoid interest or cannot qualify for a loan, usually pay a large downpayment on a house and finance the rest for a few years through the owner.
If the buyer defaults on the payments, the land owner can get the house back through a court order. Buyers have several months, depending on how much they have invested in the property, to redeem the deal.
In this transaction, buyers bare majority of the risk, but most people seem to honor their contracts because they already invested a lot of money in the property.
Most sellers do not like land contracts because they want to sell the house and move on and do not want to deal with the continuous responsibility of having a house to their name for several years.
For more information on land contracts, consult a real estate attorney.
