Explain This To Me Of You Know? Please : )
Thinking about doing a FSBO.. seller financing..
Land contracts do not pass legal title to the buyer, but give the buyer equitable title. The buyer makes payments to the seller for a certain period. Upon final payment or a refinance, the buyer receives the deed.
How does a refinance change this deal? what changes?
Could you please supply an example?
THANKS IN ADVANCE!
The refinance pays off the seller financed contract, thereby completing the terms of that contract.
Since the seller is now paid off by that refi, the deed transfering title is recorded with the new buyer on title, subject to the new financing.
John (LV)[ Edited by jfmlv1950 on Date 08/25/2008 ]
Thanks!