Escrow Services Blog

Private Financing Specialists

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Attention Realtors: Terms Protect Your Price in Baton Rouge

A carry-back is a better concession than a price cut because the seller protects their equity and earns interest on the balance.

Erik JensenOctober 20, 20265 min read

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Northshore Prices Held While Affordability Fell

When affordability drops and home prices remain steady, a bond for deed can bridge the gap and keep Northshore transactions moving forward.

Escrow Services, Inc.October 13, 20265 min read

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VantageScore Is In. Your Bond for Deed Buyers Just Became Bankable.

Fannie and Freddie accepting VantageScore 4.0 lets buyers refinance out of seller financing, giving note holders a complete win with an early full payoff.

Erik JensenOctober 6, 20265 min read

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How Six Months of Rising Rates Altered a $250,000 House Payment

How a six-month climb in interest rates impacts a typical $250,000 Northshore house payment and why a Bond for Deed offers a necessary bridge.

Escrow Services, Inc.September 29, 20265 min read

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The Fed Raised Rates. Your Buyer's Payment Did Not Move.

A fixed Bond for Deed payment set directly by the parties offers insulation the traditional bank market cannot match after a rate hike.

Erik JensenSeptember 22, 20265 min read

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Why a Servicer Matters Most the Week After a Storm

After storms like Bertha and Edouard, the seller-financed deals that stay clean have a third party keeping records and taking payments.

Erik JensenSeptember 15, 20265 min read

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Financing Terms Win the House in a Tight St. Tammany Market

When housing inventory tightens, sellers who carry the note and buyers with a strong down payment bypass conventional mortgage barriers.

Escrow Services, Inc.September 8, 20264 min read

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St. Tammany's Fire Ratings Improved. Small Savings Are Worth Chasing.

Recent fire rating upgrades in St. Tammany Parish lower property insurance premiums, creating compounding savings for buyers in seller-financed deals.

Escrow Services, Inc.September 1, 20265 min read

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A Flat Metro Is Where Seller Financing Earns Its Keep

When Louisiana home appreciation stalls, sellers can move property and maintain their asking price by competing on terms traditional banks cannot match.

Erik JensenAugust 25, 20265 min read

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Why Seller-Financed Deals Need a Third-Party Ledger

A complete third-party payment history is the definitive record that settles questions between buyers and sellers.

Erik JensenAugust 18, 20264 min read

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Sales Stalled at 4.06 Million. Seller Financing Moves Inventory.

When high rates and rigid underwriting push conventional buyers out of the market, a well-structured Bond for Deed gives sellers a way to close the deal.

Erik JensenAugust 11, 20265 min read

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Rates rose four weeks running in July. A payment the parties set once does not.

While national average mortgage rates drift higher, an installment schedule agreed to at closing provides absolute certainty for buyers and sellers.

Erik JensenAugust 4, 20264 min read

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Bertha Came Ashore at 45 mph. The Bill Comes from Water.

A weak tropical storm is a reminder that flood coverage, not wind, is the gap that sinks a private sale. Put proof of coverage on the closing checklist.

Erik JensenJuly 28, 20265 min read

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Private Mortgage Servicing Is Not Only for Big Lenders

Individual sellers can secure professional record-keeping, escrow handling, and neutral payment administration for a single loan at a low flat fee.

Escrow Services, Inc.July 21, 20265 min read

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The ROAD to Housing Act Is Law. It Does Not Fix Louisiana's Insurance Problem.

Federal supply measures cannot solve the massive insurance premiums killing local deals, but a properly serviced Bond for Deed can hold the transaction together.

Erik JensenJuly 14, 20265 min read

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Arthur Dropped 29 Inches: Require Flood Insurance in Private Deals

Inland flooding from Tropical Storm Arthur shows why private real estate sellers must require buyers to maintain active flood insurance.

Escrow Services, Inc.July 7, 20265 min read

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Servicing Self-Directed IRA Notes When Custodians Cannot

Self-directed IRA custodians hold the asset, but independent escrow agents must collect, track, and disburse the monthly payments.

Escrow Services, Inc.June 30, 20264 min read

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New 60-day cancellation notice protects the seller's collateral

Act 848 doubles the property insurance cancellation notice to 60 days, giving buyers and sellers vital time to protect their real estate collateral.

Erik JensenJune 23, 20265 min read

Flexibility

Bond for Deed Flexibility Series #4 Avoiding Private Mortgage Insurance (PMI) Through a Bond for Deed

One of the most frustrating costs for many homebuyers using conventional financing is Private Mortgage Insurance, commonly known as PMI.

Escrow Services, Inc.June 18, 20262 min read

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Wholesalers Now Have to Escrow 1%

Louisiana’s new Act 807 imposes the kind of third-party escrow discipline on wholesalers that Bond for Deed has utilized for decades.

Erik JensenJune 16, 20265 min read

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Why Flat Monthly Servicing Fees Beat Itemized Charges

A flat monthly servicing fee offers property sellers better long-term value than a schedule filled with per-item administrative charges.

Escrow Services, Inc.June 9, 20265 min read

Flexibility

Bond for Deed Flexibility Series #2 How a Bond for Deed Can Temporarily Protect Assets

One of the most misunderstood features of a Bond for Deed transaction is that the buyer receives possession and the economic benefits of homeownership, while legal title remains with the seller until the contract is paid off or refinanced.

Escrow Services, Inc.June 4, 20263 min read

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Myths

Myth #14: A mortgage denial means the buyer is a bad risk.

A mortgage denial is usually a lending-box problem, not a character judgment, making Bond for Deed a practical alternative for capable Louisiana buyers.

Escrow Services, Inc.June 2, 20265 min read

Flexibility

Bond for Deed Flexibility Series 1: How a Bond for Deed Can Materially Reduce Closing Costs

In today’s real estate environment, many borrowers struggle to bring enough cash to the closing table.

Escrow Services, Inc.May 29, 20262 min read

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Facts

Fact #11: Why Louisiana Banks Stopped Servicing Bond for Deed Contracts

Licensed escrow agents replaced traditional banks in servicing bond for deed agreements, creating a more specialized process for title companies.

Escrow Services, Inc.May 26, 20265 min read

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Pick by Who Holds Title, Not by the Document Label

The labels blur on seller-financed deals. Choose between a Bond for Deed, lease purchase, or installment option based on who holds title and equity.

Erik JensenMay 19, 20265 min read

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Myths

Myth #13: "Rent-to-Own Is the Same Thing"

A tenant with a purchase option builds no equity in the property, making a lease purchase a weaker position than a Bond for Deed.

Escrow Services, Inc.May 12, 20265 min read

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A neutral third party beats collecting checks directly

One common misconception is that sellers save money by collecting private mortgage payments directly.

Escrow Services, Inc.May 5, 20265 min read

Facts

Bond for Deed Fact #9: What Happens If the Buyer Does Not Pay

One of the most common questions asked by bond for deed sellers is: “What happens if the buyer stops making payments?”

Escrow Services, Inc.April 28, 20262 min read

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Flexibility

Flexibility #5: Insurance, Not Rates, Is Killing Closings

A Bond for Deed does not bypass insurance, but structuring the transaction properly frees up the cash buyers need for high first-year premiums.

Escrow Services, Inc.April 28, 20265 min read

Facts

Bond for Deed Fact #8: A Bond for Deed Is a Heritable Contract—Death Does Not Terminate the Agreement

A question that occasionally arises from both buyers and sellers is: “What happens if one of the parties dies?”

Escrow Services, Inc.April 22, 20262 min read

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Half of Mortgages Are Under 4%. Why Free and Clear Sellers Win.

With most homeowners locked into low rates, free and clear sellers are the natural solution for buyers needing seller financing to bypass the banks.

Erik JensenApril 21, 20264 min read

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Why Sellers Must Require Flood Insurance in a Bond for Deed

Because a bond for deed seller retains legal title, uninsured flood damage represents a direct financial risk to their collateral.

Escrow Services, Inc.April 14, 20265 min read

Facts

Bond for Deed Fact #7: A Bond for Deed Includes a Special Mortgage Granted by the Seller to the Buyer

A properly drafted bond for deed contains a feature that many people find counterintuitive: a special mortgage.

Escrow Services, Inc.April 14, 20262 min read

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Owner Financing Is How the Next Generation of Buyers Gets In

Conventional lending is shutting out younger buyers, but sellers who offer a Bond for Deed or private mortgage can set their own down payment rules.

Erik JensenApril 7, 20265 min read

Facts

Bond for Deed Fact #6: A Bond for Deed Is Recognized and Respected in Bankruptcy—If It Is Properly Disclosed

Another common concern surrounding bond for deed transactions is how they are treated in the event of a bankruptcy, whether filed by the seller or the buyer.

Escrow Services, Inc.April 7, 20262 min read

Facts

Bond for Deed Fact #5: Recording a Bond for Deed Protects the Buyer from Future Seller Liens and Judgments

One of the most common and understandable questions from bond for deed purchasers is this: “If the title stays in the seller’s name, what happens if the seller later has a lien or judgment filed against them?”

Escrow Services, Inc.March 31, 20261 min read

Facts

Bond for Deed Fact #4: The Bond for Deed Relationship Is Buyer–Seller, Not Landlord–Tenant

In a bond for deed, it is often said that the purchaser takes on both the burdens and the benefits of homeownership.

Escrow Services, Inc.March 25, 20262 min read

Facts

Bond for Deed Fact #3: Bond for Deed Terms Are Independent of Any Underlying Mortgage

A very common misconception about bond for deeds is the belief that their terms must match—or somehow track—the terms of an existing mortgage.

Escrow Services, Inc.March 16, 20261 min read

Facts

Bond for Deed Fact #1: A Bond for Deed Functions Much Like a Mortgage Loan

A bond for deed operates in many ways like a traditional mortgage loan.

Escrow Services, Inc.March 16, 20262 min read

Myths

Bond for Deed Myth #12: “It’s Only for Buyers with Bad Credit”

In our ongoing series debunking myths about Bond for Deed financing, today’s topic is especially timely given the current federal government shutdown and its ripple effects across the real estate industry.

Escrow Services, Inc.February 24, 20263 min read

Myths

Bond for Deed Myth #11: “No Equity Means No Commission”

In our continuing series on Bond for Deed financing myths, we’re tackling a scenario that many real estate agents encounter—and often walk away from prematurely: Myth #11: “If the Seller Has No Equity, There’s No Way to Earn a Commission”

Escrow Services, Inc.February 17, 20263 min read

Myths

Bond for Deed Myth #10: “It Doesn’t Help Buyers Build Equity Faster”

In our ongoing series debunking myths about Bond for Deed financing, we’re highlighting a powerful—but often overlooked—benefit for buyers who want to build equity faster and avoid unnecessary costs.

Escrow Services, Inc.February 10, 20263 min read

Myths

Bond for Deed Myth #9: “Anyone Can Prepare One”

In our continuing series on Bond for Deed financing myths, we’re diving into a misconception that can lead to costly mistakes and missed opportunities for both buyers and sellers: Myth #9: “Anyone Can Prepare a Bond for Deed Agreement”

Escrow Services, Inc.January 22, 20263 min read

Myths

Bond for Deed Myth #8: “It Doesn’t Help with Closing Costs”

In our ongoing series debunking common myths about Bond for Deed financing, today we’re tackling a misconception that can cost buyers and sellers real money: Myth #8: “Bond for Deed Doesn’t Help with Closing Costs”

Escrow Services, Inc.January 22, 20262 min read

Myths

Myth #7: “Bond for Deed Contracts Are Complicated”

One of the most common misconceptions we hear from real estate agents is that Bond for Deed transactions are difficult to execute.

Escrow Services, Inc.January 19, 20264 min read

Myths

Bond for Deed Myth #6: Only Banks Can Service These Contracts

When discussing Bond for Deed transactions—especially those involving an underlying mortgage—a common myth surfaces: “Only a Louisiana-licensed bank can service a Bond for Deed.”

Escrow Services, Inc.January 15, 20262 min read

Myths

Bond for Deed Myth #5: You Need Mortgage Holder Approval

One persistent myth surrounding Bond for Deed transactions is the belief that if there is an existing mortgage on the property, the seller must get approval from the mortgage holder before entering a Bond for Deed agreement.

Escrow Services, Inc.January 10, 20262 min read

Myths

Bond for Deed Myth #3: Buyers Are More Likely to Default

One of the most persistent myths surrounding Bond for Deed financing is the idea that buyers who use this method are more likely to default on their payments.

Escrow Services, Inc.January 5, 20263 min read

Myths

Bond for Deed Myth #2: It’s Only for Buyers with Bad Credit

One of the most common misconceptions about Bond for Deed financing is that it’s only used by buyers with poor credit.

Escrow Services, Inc.December 16, 20252 min read

Myths

Bond for Deed Myth #1: It’s Something Scary and New

When it comes to creative financing in real estate, few tools are as misunderstood—and underutilized—as the Bond for Deed.

Escrow Services, Inc.December 16, 20253 min read

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Selling Your Home? Consider Holding a Bond for Deed for Investment Income

In today’s investment environment sellers who have no immediate need for the cash they receive out of the sale of their home are giving more and more consideration to providing seller financing, particularly to buyers with material down payments.

Erik JensenApril 11, 20221 min read

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Attention LA & TX Title Companies and Closing Attorneys

Your state now requires a servicer of a note which is secured with residential real estate, where the servicer does not have a 100% interest in the note, to be licensed by the state.

Erik JensenApril 11, 20221 min read

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Looking for a Note Servicing Agent? Buyer Beware!

Like most things in life you get what you pay for when you engage a company to service your note.

Erik JensenJanuary 17, 20221 min read

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A New Pespective on Bond for Deed from Mortgage Lenders

A funny thing happened on the way to the government bailout of the “too big to fail” mortgage lenders.

Erik JensenNovember 15, 20171 min read

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Important Regulatory Note Servicing Update

June 30, 2016 represents year one since the date set by the Louisiana Office of Financial Institutions for all mortgage servicers in Louisiana to become licensed for the specific purpose of servicing residential mortgages.

Erik JensenNovember 6, 20161 min read

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Bond for Deed Myth of the Day

Sellers often assume that an individual acquiring a property under a BFD must have bad credit.

Erik JensenAugust 23, 20161 min read

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Bond for Deed Myth of the Day

We regularly hear, “If there is a mortgage on the property you need the mortgage holder’s approval to do a BFD”.

Erik JensenJuly 25, 20161 min read

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When to use a Bond for Deed

Mortgage Not Assumable—Use a Bond for Deed whenever the existing mortgage is not assumable.

Erik JensenJune 14, 20131 min read

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What is a Bond for Deed?

Simply put a Bond For Deed is a form of Seller Financing. It is a contract to sell Real Estate in which the purchase price is paid in installments and title is transferred after the payments are made in full.

Erik JensenJune 14, 20131 min read