Bond for Deed Information
Selling Your Home? Consider Holding a Bond for Deed for Investment Income
April 11, 2022 Bond for Deed InformationIn 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. Why? There are not many places today to get a 6+% return on your money. Is there risk? Sure, however having a property they know as collateral in a market they… Read More »
Attention LA & TX Title Companies and Closing Attorneys
April 11, 2022 Bond for Deed InformationYour 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. Moreover, the servicer needs to be CFPB compliant. There is no small servicer exemption and this applies to the servicing of as few as one note. What does this mean in practical terms? If you or… Read More »
Looking for a Note Servicing Agent? Buyer Beware!
January 17, 2022 Bond for Deed InformationLike most things in life you get what you pay for when you engage a company to service your note. Beware of low set up and monthly fees, as this is most often not your wisest or best choice for a servicing agent. Nobody works for free and as the old adage goes, ”There is no free lunch”. Many servicers with low set up and servicing fees charge on a… Read More »
A New Pespective on Bond for Deed from Mortgage Lenders
November 15, 2016 Bond for Deed InformationA funny thing happened on the way to the government bailout of the "too big to fail" mortgage lenders. As it happens, lenders with whom we have spoken of late have once again realized that having a secondary source of repayment (and foreclosure and liquidation should never be considered a source of repayment) is a good thing. Consequently, a home with a BFD contract on it is not a negative… Read More »
Important Regulatory Note Servicing Update
November 6, 2016 Bond for Deed InformationJune 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. ESI, active as a private mortgage servicing agent since 1985, remains the only Louisiana domiciled licensed escrow agent licensed to service residential mortgages. The advantages of engaging ESI to service your private mortgage note include; Billing… Read More »
Bond for Deed Myth of the Day
August 23, 2016 Bond for Deed InformationSellers 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,… Read More »
Bond for Deed Myth of the Day
July 25, 2016 Bond for Deed InformationBond 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”. This often arises from a misreading of the original BFD statute that says “It shall be unlawful to sell by BFD contract, any real property which is encumbered by a mortgage or privilege without first obtaining a written guarantee from the… Read More »
When to use a Bond for Deed
June 14, 2013 Bond for Deed InformationMortgage Not Assumable—Use a Bond for Deed whenever the existing mortgage is not assumable. Anyone can make the payments of an existing mortgage and court decisions have clearly established that permission of the mortgage company is not required, unless the mortgage specifically prohibits Bond for Deed. In Lieu Of A Lease/Purchase—The Advantages of a Bond for Deed versus a Lease Purchase to both Buyer and Seller are numerous and significant.… Read More »
What is a Bond for Deed?
June 14, 2013 Bond for Deed InformationSimply 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. In other states, Bond for Deed is usually called Contract for Deed or Land Contract. Bond for Deed contracts may seem relatively new, however, laws covering Bond for Deed contracts… Read More »