Q: I'm selling a vacant land parcel with seller financing. What loan type is recommended (land contract vs. deed of trust)?
If I use your recommended documentation and the buyer ever stops paying, is it possible for me to do a non-judicial foreclosure to repossess my property? Will I need to include any specific language in order to take advantage of this option?
Assuming I understand the proper procedure, is a non-judicial foreclosure something I can handle by myself, or do I have to work with an attorney (or a Trustee) to complete this? Or, if I am required to work with an attorney (or the Trustee) to complete the process, how much does it typically cost (and how much time does it take) to complete the foreclosure?”
A: I would prefer to use a promissory note and deed of trust to secure your seller carryback loan. In the event of a default, a deed of trust can be foreclosed non-judicially by trustee's sale. You might be able to handle the trustee's sale yourself but I would not recommend it. I strongly recommend hiring a lawyer who handles a lot of these to assist you with a trustee's sale. Be prepared to budget several thousand dollars for this process which will often take 4-6 months to complete.
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