It appears you have three options with regard to these persons:
1) Rent to them until they are able to finance a purchase. You would take on the responsibilities of a landlord in exchange for monthly rent. If they default in payment it is fairly simple to evict them. At the end of the 24 months you can arrange a sale.
2) Sell to them on land contract. You can contract to them some of the responsibilities of a landlord while retaining ownership of the property. If they default in payment it is more difficult to eject them.
3) Sell to them by lending them the money. You would want to retain and record a first mortgage for the amount of the sale. Ownership transfers upon recording the deed. If they default in payment you would need to foreclose.
Each option has its own advantages and disadvantages, depending on the amount of responsibility you want to retain for the property and your level of risk tolerance. I would recommend that you seek a legal consultation for more specific advice and definitely recommend legal representation in preparing documents for any of those options.
Jennings Law Offices LLC and Attorney Jonathan P. Jennings are providing the above response as a matter of public information. No individual legal assessment or legal advice is intended. Confidential legal advice can be provided at a personal consultation. 223 West Main Street, Ravenna, Ohio 44266. 330-296-6300. www.jenningslawofficesllc.com
You don't need details
You need a good local real estate attorney who will outline the various alternatives based on your circumstances and the family's situation
My colleague set out the basic options available
But this forum cannot adequately answer the full question
- Also, this not a Do-It-Yourself deal
Hire an attorney
There are several good legal options available to you. Always keep in mind the fact the potential buyers were rejected by the bank and are now asking you to be, in effect, the lender/bank. Do you want to take that risk ? It could cost you a lot of money and pain in the long run. You really need a good real estate attorney to give you the advise you need.
So there is no misunderstanding, this answer does not create an attorney/client relationship and you cannot presume that I am your lawyer or that my advice can be relied upon in any way other than for information only. You will not become my client unless and until you retain me.
Congratulations to you! If you "sell on land contract" you retain the deed in your name as collateral, but all other incidences of ownership go the the vendee. You will need a real estate attorney to make sure you include all thing necessary by Ohio law, I you should record it as well for our protection and the vendees [buyers]. You will want a down payment and a pre-agreed purchase price to apply in the future. There are to many issues to address here, so please get a local attorney
I am an Ohio-licensed attorney. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting me does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised. firstname.lastname@example.org