The Market Value Of A Private Land Contract

I. Every land contract is a unique investment and therefore has a unique market value.

II. There are a number of important factors that simultaneously determine the market value of a land contract. Those factors are:

  1. The type of property secured by the land contract.
  2. The value of the property secured by the land contract.
  3. The current balance of the land contract.
  4. The interest rate on the land contract.
  5. The size of the monthly payments.
  6. The number of payments made.
  7. The number of payments remaining.
  8. The Borrower’s credit history.
  9. Your experience receiving payments.
  10. The current level of interest rates.

III. Land Contract holders can take pro-active steps to protect the market value of their investment.

IV. The market value of a land contract will be less than the outstanding principal balance remaining on it.

V. When interest rates rise, the market value of a land contract falls.

VI. When interest rates fall, the market value of a land contract rises.

VII. The market value of a land contract will increase over time as the owner builds equity in the property and establishes a timely record of making payments.

 

Selling A Land Contract

I. Almost every land contract can be sold.

II. There are a number of companies that purchase private land contract creating a very active and competitive market for them.

III. Land Contract holders have a number of different sale alternatives available to them; each can be designed to help meet a specific goal they would like to achieve. For example, The Mortgage Buyer, Inc. offers customizable options.

IV. Providing detailed information about your land contract will help you receive the highest purchase price for it.

V. At The Mortgage Buyer, Inc., we pay for all of the expenses necessary to complete the purchase of a private mortgage.

  1. The value of the property must be established by completing a drive-by appraisal.
  2. A policy of title insurance must be purchased on the land contract.
  3. The outstanding balance of the contract must be verified with the Borrower.

Questions? Feel free to contact The Mortgage Buyer, Inc. weekdays from 9:00 AM to 5:00 PM EST toll free at (800) 618-2485 or email us.

The Mortgage Buyer, Inc • PO Box 100 • Hillsdale, NY 12529 • 1-800-618-2485 • email: John@TheMortgageBuyer.com