Whenever I see the look on the smiling faces of the families or individuals who have just realized that they are now going to be able to move into their chosen home, I break out with a wide smile as well. This is why I love land contracts so much, as they represent additional opportunities for many. The goal of buying a home with poor credit has been beyond the reach of many young families these days and this can lead to significant depression, on an ongoing basis. It makes my heart ache to see these individuals go from pillar to post, from bank to mortgage broker, trying to find an option to help them do the right thing for their families. It may be that they just don't have enough money to put down as a down payment, or other reasons beyond their control may lead to difficulties, maybe the loss of a career job due to the recession? It doesn't take long for your previously good credit scores to take a dive when you are faced with a job layoff or similar consequential event. It doesn't take much to ruin credit ratings that have taken years to establish.

When you see first time home buyers with bad credit opening the door to their new starter home, you can see why I love land contracts. From that moment on, they are doubly motivated to make ends meet, fully understanding that they are moving into a home of their own, getting away from the payment of somebody else's mortgage and responsible for the creation of new beginnings.

It's never been easy buying a house with poor credit and a quick recession has made it an awful hill to climb for many. Land contracts offer a ray of hope to families and individuals who might have thought that they would never move into their own house. Land contracts bring together motivated entities – the seller wants to sell and the buyer wants to buy. This is a good place to start, and from here negotiations can often set the repayment terms and conditions palatable to both parties.

I love land contracts because I hate to hear the word “no” being uttered by bank officials who have to stand behind corporate rules and positions. These bank officials may be well-meaning, but the restrictions imposed by corporate red tape tie their hands and it is true to say that banks are afraid of their own shadows in our present economy.

I recently saw a young couple move into their dream home in Grosse Pointe, Michigan and could not get over the look of elation on their faces. This is why I love land contracts and always advise people considering this option to make sure that they are very careful when putting this all together. Anticipation can sometimes get the better of you and before you rush forward, make sure that the contract is all above board, completely legal and that all parties understand and are able to meet their responsibilities.

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