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Wm. T. Follis, LLC, Realtors
Bellingham, WA 98225
Phone: 360-734-5850
info@follisrealtors.com

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Land Contract

An alternative to a non-conforming loan is the use of a land contract, which is allowed in some states. A land contract is an agreement between a buyer and a seller, where the buyer agrees to make periodic payments to the seller. The title to the property only transfers to the land contract buyer on fulfillment of the land contract obligations.

A land contract can be helpful for those who need time to establish or improve their credit rating. There are only small closing costs, and payment can help establish a good mortgage payment record. This can help establish an overall good credit rating, and it is possible for the buyer to later refinance the land contract with a conforming loan.

On the other hand, there are risks associated with land contracts. Land contract purchases are not necessarily recorded in the public record, and there are no guarantees that the seller will be able to transfer a clear title to the buyer upon fulfillment of the land contract. There also is no lender assuring that the purchase price for the property is justified, and no inspection of the property’s condition.

Another alternative to a non-conforming loan is assuming the seller’s mortgage. By assuming a mortgage, if the mortgage is assumable, it is possible to save on closing costs, and may allow you to obtain a favorable interest rate.

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Testimonials

Dear Kerry, Thanks for all your help and concern during the “from hell” house transactions! I also appreciate your contribution (reduced commission). It allowed me to get into this house. It’s nice to be settled and away from that isolated spot, which was great living there but terrible, alone. Merry Christmas Vicki
Thank you to Bruce Boyle for making my house selling experience so positive. Bruce went the extra mile on several occasions to assure my total satisfaction at each turn. I was kept informed of every development and included in every decision. Documents were made available for review and signature online and in person. He even stayed in the office during a blizzard to accommodate my availability to drop off paperwork and complete the numerous forms. Bruce was professional, helpful and thorough. There were no surprises and the sale closed on time at the full price. My thanks again to Bruce Boyle and the entire team at Follis Realtors. Sincerely, Dave
Jeff, we would have never found this wonderful place without you, and we didn’t have a clue as to how to buy. We owe it all to you. Thanks. Janis & Loren
Jeff Sawyer manages a rental property for me and has always taken care of all items that have come up in a timely manner. I appreciate the job he does for me and my renters do too. Michael
Jeff Sawyer has been my property manager for about 11 years. He does all the ads for new tenants; collects all rent, pays all utilities, takes care of all repairs; supplies with monthly and year end statements, etc. I would highly recommend Jeff for all phases of property management along with all real estate dealings. Brian
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