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Bond for Deed Information

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

April 11, 2022 Bond for Deed Information

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. 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 »

A New Pespective on Bond for Deed from Mortgage Lenders

November 15, 2016 Bond for Deed Information

A 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 »

Bond for Deed Myth of the Day

August 23, 2016 Bond for Deed Information

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,… Read More »

Bond for Deed Myth of the Day

July 25, 2016 Bond for Deed Information

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”.  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 Information

Mortgage 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 Information

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. 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 »