People with a land contract put money down, make regular payments plus interest, and pay taxes and insurance. If they make payments all the way to the end of the contract, they will own the home. If they don’t they can be evicted and lose everything they put into it.
News Story (Georgia)
Atlanta Journal Constitution (AJC)
August 1, 2016
READ THE FULL STORY HERE
Tags: Housing: Contract for Deed, Housing: Discrimination
Organizations mentioned/involved: Atlanta Legal Aid Society
That’s what could happen to Butts and his wife, who this summer got an eviction threat after some late payments.
“It’s a 30 year contract. You could make payments every month and lose it in year 29,” said Kristin Tullos of Atlanta Legal Aid, which is representing the couple as they try to stay in the home.
Georgia, like most states, does not regulate land contracts, which are also known as “contracts for deed.” Critics say companies offering them target credit-starved, minority neighborhoods and deceive consumers. The deals typically carry interest rates well above those for mortgages.