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RED BARN REALTY

990 Somerset St.
Watchung, NJ 07069
(908) 754-0111

Thank you for visiting today. If this is your first visit, please take your time and look around. We have plenty of information and resources available to you. If you are a return visitor, thank you. We would love to hear from you, so we may tell you how we can serve all your real estate needs.

Red Barn Realty has been in business and serving the Watchung/Warren Communites and surrounding towns since 2001. Broker-Owner, Carl Porambo is a 17 year real estate professional who undertands all facets of the real estate business. Carl's local and regional knowledge of the market is beneficial to buyers and sellers alike.

Carl grew up in Scotch Plains, has lived in Basking Ridge for the past 15 years and operates his Brokerage out of Watchung for the past 10 years. His local knowledge is your advantage!

In addition, all of our Red Barn Realty agents live and work throughout Somerset, Morris, Hunterdon and Middlesex Counties of NJ. Combined, our firm has nearly 20 years of experience in real estate. Please feel free to connect with us to inquire about any and all of your real estate needs.

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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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