Purchasing real estate with a land contract - answers to questions.
Land contracts vary widely from transaction to transaction.
In most cases, no grant deed is recorded. The buyer rarely obtains a new mortgage loan at the time of purchase. Instead, the new owner makes payments to an intermediary, who then makes payments on the seller s mortgage, which is still in place. Keep in mind that such an agreement usually violates the lender's guidelines. This would require you to refinance the loan or sell the property.