CFPB-PR-240813-1 (Aug. 13, 2024) CFPB Takes Action to Stop Contract-for-Deed Investors from Setting Borrowers Up to Fail – CFPB affirms that contracts for deed must comply with longstanding federal mortgage protections. Date: Aug. 13, 2024 Accessed: Aug. 26, 2024 Source URL: https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-to-stop-contract-for-deed-investors-from-setting-borrowers-up-to-fail/ Categories: CFTC CFTC-24 CFTC-2401 Contract-for-Deed Investing PDF Notes: The PDF viewer below disables […]
Category: Contract-for-Deed Investing
Contract-for-Deed Investing – Contract-for-Deed Investors purchase properties with the intention of selling them through a contract-for-deed arrangement, where the buyer makes installment payments to the seller over time while the seller retains legal title until the full amount is paid. Buyers should be aware of several key aspects: the interest rate and payment terms may be higher than conventional mortgages, and they might face a higher risk of foreclosure if they miss payments. Additionally, because the seller holds the title until the contract is complete, the buyer’s ability to make improvements or sell the property could be restricted. It’s crucial for buyers to thoroughly review the contract terms, understand their legal rights, and ensure that the seller is in good standing to avoid potential disputes or complications.