|
n. Illinois | Anyway to split up the property into two different parcels?
Parcel A with house stays on land contract with original seller.
Parcel B is deeded to them so they can mortgage it to a lender to make the improvements. the improvements need to be on Parcel B too.
Easiest plan is to eat the zero interest rate, and payoff the land contract with a conventional mortgage get the property Deeded to them and move on with the improvements. Don't get hung up over the interest rate, Having the property deeded to them in the long run is better for them as it prevents any weird things from happening between them and the sellers I have seen some weird things happen, things like the sellers mortgage the property and forget to tell the buyers and then fail to make the payments. The lender will have a valid first mortgage that trumps the land contract. (its takes a special type of person to do this but I have seen it happen)
| |
|
Land contract
