Yes, a Living Trust can use a land contract to sell a property held in its name. The Land Contract simply needs to be completed correctly for a Trust.
The Land Contract would list the name of the Trust as the property owner, and the buyer would need to understand and follow the terms of the Land Contract document to earn title.
A Land Contract sales structure is indeed a viable option in a tight credit market as a way to increase the buyer pool.
For a discussion about the functionality of Land Contracts (with pros and cons), see Standard Legal’s Law Library Land Contract Overview.
For complete details, see Standard Legal’s Land Contract legal forms software here.