Posted by Randy (SD) on March 29, 2004 at 11:32:48:
They put down a down payment because that’s what the seller requires, I recently sold a twin home for $129 K. with 10% down payment ($12 K.)on a CFD, thirty-year amortization at 9% interest with a five-year balloon.
contract for deed - Posted by Ron
Posted by Ron on March 28, 2004 at 14:32:47:
I am selling on CFD for the first time. They move in on the first of april. When doing this do they pay in advance on the first, or is it paid in arrears like a note is? (hence first payment due 1st of May.
Re: contract for deed - Posted by Brent_IL
Posted by Brent_IL on March 28, 2004 at 18:18:25:
When you said that you are selling, the inference is that you haven’t closed yet. It seems as though you’re still negotiating some of the terms, such as when the payments are due. The answers to questions like this are always found in the paperwork that you sign prior to closing. You can negotiate the terms to be whatever you want. I would question the wisdom of letting anyone move in before your agreement is reduced to writing.
Re: contract for deed - Posted by irene
Posted by irene on March 28, 2004 at 15:01:54:
Ron, We have done ‘contract for deeds’ for years now. We decide each case on its own basis. Did you get a down? How much? If they just shelled out a hefty down, we give them a one month break. If it was no down (which we have never done)or a low down, we would do the deal as a ‘lease purchase’ instead of cfd and start their payments immediately. If they didn’t want to go with the lease purchase contract, then go the cfd and start the payments asap. The money they invest is your security on the deal. I don’t think there are any rigid rules. Look at each deal. What works for everyone? Treat people like you would want to be treated. What’s fair for all works best for us.
Re: contract for deed - Posted by Rudy Washington
Posted by Rudy Washington on March 29, 2004 at 11:17:56:
Why would anybody put down a sizable down Payment. if they do not have the deed. If I understand correctly they just have equitable title. Maybe they do not get title because you will be finacing the loan and you need to protect the interest in the property. Need some more light shed on this subject.
Re: contract for deed - Posted by Rudy Washington
Posted by Rudy Washington on March 29, 2004 at 11:17:52:
Why would anybody put down a sizable down Payment. if they do not have the deed. If I understand correctly they just have equitable title. Maybe they do not get title because you will be finacing the loan and you need to protect the interest in the property. Need some more light shed on this subject.