Per the recent Realtor Magazine issue, tread carefully amidst the revival in contract-for-deed sales!
A contract-for-deed is a seller financing option that’s been gaining popularity with credit challenged buyers.
This kind of arrangement is when buyers pay the sellers a high-interest installments toward the purchase price of the home. Know that under a contract for a deed, equity is not accrued and the deed is not obtained until the loan is paid off. Meanwhile, sellers have the authority to edit buyers, typically in 30 to 60 days, if they miss even a single payment.
While this type of financing has been around since the 1960’s, terms can often be written to exploit naive buyers!
For recommendations for reputable and hard working lenders with good rates, please give me a call. I am your full service real estate agent and go-to girl for who-to-go-to!
Photo courtesy of Dillon Scheps
