Skip to main content

View Diary: Crumbs much too small for the other Whos' mouses (199 comments)

Comment Preferences

  •  Contract for deed (19+ / 0-)

    Flippers can remarket the home as  a "rent to own", or on contract for deed (CD).   A big payment, known as a balloon, or a payoff date just a few years away often ends up with the investor getting the house back, because the buyer still cannot raise the money or qualify for a loan.  The buyer, meanwhile, has taken care of the house, paid the taxes, insurance etc plus a nice interest rate.

    The investor has the contract-for-deed buyer at a great disadvantage.  In most states the CD buyer can be evicted just like a renter.

    I'm not against CD sales.   I bought my first home on CD and fixed it up over five years.    

    There are many very legitimate sales that are accomplished with a CD, and many very legitimate reasons why a seller would accept CD terms.    If the buyer is reliable, the seller gets interest on the loan, and the buyer gets a good deal on a house that might need work.

    But, in an unregulated market where the buyers are blocked from mortgages and have to deal with unscrupulous real estate investment trusts (REIT), they have little choice but to accept their fate.    As sumner so elequontly describes, the buyer has nothing that the REIT wants.

    Religion gives men the strength to do what should not be done.

    by bobtmn on Sun Dec 16, 2012 at 06:56:22 AM PST

    [ Parent ]

Subscribe or Donate to support Daily Kos.

  • Recommended (134)
  • Community (63)
  • 2016 (52)
  • Environment (42)
  • Elections (38)
  • Republicans (36)
  • Media (36)
  • Hillary Clinton (32)
  • Jeb Bush (30)
  • Iraq (30)
  • Barack Obama (30)
  • Law (29)
  • Climate Change (29)
  • Culture (28)
  • Trans-Pacific Partnership (26)
  • Civil Rights (26)
  • Labor (21)
  • Economy (21)
  • LGBT (17)
  • Science (17)
  • Click here for the mobile view of the site