Buying a home on a contract can be a way for persons who are low-income or who have poor credit to become homeowners. However, there are certain risks to know about to avoid surprises after the contract is signed.
If sale of a home in a foreclosure action does not cover the amount owed to the lender, part of a loan may not have to be paid back. The IRS may consider the amount of debt "forgiven" as income and tax it.
Iowa Legal Aid provides legal help to low-income Iowans facing legal problems involving civil (non-criminal) legal issues. Iowa Legal Aid helps the legal system work for those who otherwise cannot afford the help of a lawyer. Watch our client stories.