Bond for Deed Myth of the Day
Sellers often assume that an individual acquiring a property under a BFD must have bad credit.
Sellers often assume that an individual acquiring a property under a BFD must have bad credit. This may be the case in some instances, however, we see individuals daily with good credit that cannot qualify for a conventional mortgage loan. Among the many reasons are: too new in their current job, recently divorced, moving and have not sold their old home, self-employed and shelter much of their income, family illness, and more.
Many prospective buyers with and without impaired credit have excellent incomes, substantial funds to use for a down payment, and handle their finances in a responsible manner. Sellers are well advised to keep an open mind when offered a BFD purchase as, short of a cash sale for the full asking price, a well-structured BFD offer may be the best offer.
