Land Contract Help...
This is a question a friend posted to me that I thought I would post on the site since I do not know this answer.
He wrote:
"I would like some feedback from anyone who has experience with land
contracts. I purchased a small commercial building (MF & retail) on a land contract. Did some rehab and re-sold it on a land contract. My LC (to buy) is recorded. The LC to sell is not. My buyer went to his lender for his
personal residence to get the property refinanced. He was supposedly told
that I can't sell him the property because I don't own it. The seller (to me) holds the title free and clear. Obviously, he was given wrong information. The problem now is that my buyer's wife is convinced I am ripping them off. They did a lot more rehab to the building and opened up a family business in it. Now she is threatening legal action. Although she hasn't a clue what a LC is. She
thinks it only involves the land 
Any suggestions?"
Thanks all,
Christian "The Solutions Kid" Beebe
[addsig]
After my first land contract deal I will have to say that I will never do this again. It is too much of a hassle and too much risk compared to purchasing a property subject to. In this case there is no mortgage. Your friend could have simply got a deed and created a mortgage to give to the seller. The easiest way to fix this problem is as follows:
1. Get your buyer under contract
2. obtain a short bridge loan
3. get the deed
4. sell the property
#2 is likely the problem. I'm a true believer of using private money.
If you can't get #1, then you can't go on. The convincing of the wife is pure psycology so good luck!
Tell your friend that, faced with a threat of legal action, his next step is to contact his attorney -- without delay.