Are Land Contracts in Arizona Legal?

Land Contracts in Arizona Land Contracts despite the downsides of it, are in fact Legal in Arizona. In some states, land contracts are illegal and cannot be contracted or closed in anyway. However, Arizona allows land contracts with or without a title company. Why do a Land Contract? It's a form of a seller carryback, which enables the buyer to obtain equitable title without going to a bank to take a loan. What type of title do Land Contracts have? Equitable title, because the title itself has not been transferred yet. Only with Legal Title does the title actually convey to the buyer. Equitable title properties in Arizona Broker Executives, Inc.. stays away from equitable title properties, largely because there a risk involved for the buyer. If the buyer then owner falls behind on their payments, they can be "evicted" within a very short period, usually 30 days.

Homes with Owner Carry Financing in Arizona If you're thinking about a buying with owner financing, a great place to start is www.sellercarryhomes.com . We have the most comprehensive MLS Listings of Seller Carry Homes. If you have at least 10% down, we can close a seller carry house in under a week. To get started contact us at 480-297-2008 and speak with one of our qualified seller carry Realtors.

A Land Contract also known as an Agreement for Sale is when the seller gives the buyer/borrower “equitable title”, while the seller retains legal interest in the property until the debt is satisfied. In case of default a land contract usually contains a clause protecting the seller and allowing the seller to forfeit the contract and evict the buyer. The difference between a land contract eviction and a trust deed eviction are the time frames involved. Time frame for trust deed foreclosure is about four months. Time frame a land contract foreclosure/eviction depends on the how much the buyer placed as a down payment. The following shows the eviction time for a land contract: • 0-19 Percent Equity 30 days to catch up payments • 20-29 Percent Equity 60 days • 30-49 Percent Equity 120 days • 50 percent or more 9 months

How fast can an owner foreclose on a land contract/agreement for sale?

The equity position a buyer has which ultimately is the amount they put down on the purchase will change the time period an owner can foreclose. We'll start off with how fast an owner can foreclose based on a buyer putting 10% down.

30 days-The first day a buyer becomes late on the payment, they have 30 days to bring the payment current.
20 days-After they have not made payment in 30 days, they have 20 days called Specific Performance to bring it current.
10 days-After the 20 days, they have 10 additional days to bring it current or the forfeiture period takes effect.

Can seller do a seller carryback on a home if they still owe a mortgage?

Yes; however, the way they sale the property is different because a note is on the property. They can still convey the property, but if there is a "due on sale clause" they'll need to wrap up title a little different than a traditional carryback mortgage. For information regarding this or if you're a seller wanting to list their property as owner financing, please call Broker Executives, Inc.. at 480-297-2008.