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Thumb of Michigan | Family?
Friends?
Personal no collateral loan?
Wait until balloon payment/deed transfers to them?
Lastly, borrow from retirement plan (not usually a good idea, max is 5-year loan)?
This is one the 'downfalls' with LC. If they add-on, build, make improvements, etc. it's not their property (yet). Normally, there is a ballon payment (2-5 years) to eliminate the LC so title/deed transfers to them. Lender wants to be first or second in line on deed to recoup monies. Perhaps seller (LC holder) would consider changing LC to become a private mortgage holder (interest would have to be more than zero however).
To the point of 'no interest' on present LC, IDK if I'd want to be associated. I suppose it might be alright as long as no one notices.
https://www.irs.gov/publications/p537 | |
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Land contract
