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Eastern, IN | Most importantly if you sell on contract you MUST write the contract to where the land stays in your name until paid in full. If you write it to where you are the 1st lien holder, you may never get paid for your property! Even remaining the title holder (land in your name) you are still subject to getting the property tied up in bankruptcy! I sold a 30 acre tract on contract and they buyer filed bankruptcy. Yeah, I got my land back after keeping it tied up in court for 1 year and spending $1k in legal fees. Getting the property back is OK but it maybe worth less then when you sold it the first time.
I would also make it shorter contract with a balloon payment at the end. I did a 10 year contract and the guy defaulted year 8 after only paying 6% interest and no principle. I can also provide more details on my bad deal if it would help you. My only point is if you do it, learn from what I did right and what I did wrong. Good luck!
Attached is a spreadsheet with an amortization schedule that shows principle and interest payments. You can change the numbers (interest amount and principle) to reflect what you need. I have other schedules if you need them. This will not help most of the farmers on here because they don't need these hated spreadsheet! LOL
Edited by 2388 2/8/2012 10:39
Attachments
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 loan calculator 20 yr note NAT.xls (31KB - 96 downloads)
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Question re: Holding Mortgage on Property
