Many aspiring homeowners see a land contract as the answer to their prayers, but mortgage experts and lawyers say they almost always result in financial calamity.
“Land contracts and leases with option to buy are both costly and destructive detours that diminish the likelihood that consumers entering these contracts will ever own a home,” said Sarah B. Mancini, co-director of advocacy for the National Consumer Law Center.
“We estimate that more than half of these transactions fail. Indeed, we believe that these transactions are designed to fail.”
Ms. Mancini testified before the Senate Banking Committee’s Subcommittee on Housing, Transportation, and Community Development on July 11….