Buying A Home On Contract -

They entered into a , often called a land contract.

The day of the "closing" wasn't at a fancy Title company office. It was back at Arthur’s kitchen table, though this time a lawyer sat between them. buying a home on contract

Arthur, usually a kindly old man, called them three times a day. Under a standard mortgage, a bank has to go through a lengthy, months-long foreclosure process if you miss payments. But under their specific contract—which had a "forfeiture clause"—if they defaulted, Arthur could technically cancel the contract, keep their down payment, keep all the monthly installments they’d paid, and keep the house. They entered into a , often called a land contract

The deal was simple on the surface: Elias and Sarah would pay Arthur a $15,000 down payment—every cent of their savings—and then pay him $1,800 a month for seven years. This included a 6% interest rate, which was higher than the banks, but for them, it was the only game in town. Arthur, usually a kindly old man, called them