Land Contract, Lease w/Option, or Rent
Unable to conventionally sell refurbished $180K home due to market conditions. Need off of the $1000/mo. mortgage. Which is the safest route to take – sell on Land Contract, Lease w/Option to Buy, or Rent it for a year and ride out the storm?
Re: Land Contract, Lease w/Option, or Rent
In my opinion, renting is the way to go. In my experience, foreclosing on land contracts and options is much more burdensome in that the buyer has more rights for the court to protect. For example the right of redemption which provides a 6 month period in which the buyer can pay up and continue in the property. Furthermore, what if you sell on land k or lease w/ option, and then the buyer files for bankruptcy? You will be stalled and spend $$$ getting the automatic stay lifted. Rent it out and if the buyer defaults, getting him out is as easy as sending him a 7 day notice to quit! (Well not that simple, but relatively, yes.)
Renee Walsh
Walsh Law PLLC
1805 Hamilton Road
Okemos, MI 48864