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CATHY LITOBORSKI
Realty Executives Elite
15400 127th Street
Lemont, IL 60439
(630) 567-8927 Direct
(630) 243-9500 Office
cathylitoborski@realtyexecutives.com


 

 

AREAS SERVED: Lemont, Homer Glen, Orland Park, Lockport, Crest Hill, Darien, Downers Grove, Plainfield, Woodridge, New Lenox, Mokena, Bolingbrook, Palos Park, Palos Heights, Palos Hills, Naperville, Tinley Park, Westmont, Willowbrook & more!

 

  • Full-time licensed Real Estate Broker
  • Consistently a top producer in the area
  • 25+ years professional experience
  • $14+ million SOLD in 2018
  • 40+ homes SOLD in 2018
  • 2017's #1 in total dollar volume of closed transactions in the RE Great Lakes Region
  • 2016's #1 Solo Lister in the RE Great Lakes Region 
  • 5/5 star rated Real Estate Broker
  • Certified Residential Specialist 
  • Accredited Buyers Representative 
  • Certified Negotiation Consultant
  • Certified Seniors Real Estate Specialist

 

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Land Contract

An alternative to a non-conforming loan is the use of a land contract, which is allowed in some states. A land contract is an agreement between a buyer and a seller, where the buyer agrees to make periodic payments to the seller. The title to the property only transfers to the land contract buyer on fulfillment of the land contract obligations.

A land contract can be helpful for those who need time to establish or improve their credit rating. There are only small closing costs, and payment can help establish a good mortgage payment record. This can help establish an overall good credit rating, and it is possible for the buyer to later refinance the land contract with a conforming loan.

On the other hand, there are risks associated with land contracts. Land contract purchases are not necessarily recorded in the public record, and there are no guarantees that the seller will be able to transfer a clear title to the buyer upon fulfillment of the land contract. There also is no lender assuring that the purchase price for the property is justified, and no inspection of the property’s condition.

Another alternative to a non-conforming loan is assuming the seller’s mortgage. By assuming a mortgage, if the mortgage is assumable, it is possible to save on closing costs, and may allow you to obtain a favorable interest rate.

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