Who is a Likely Buyer for a ‘Bond for Deed’?


. . . an important question if you are the seller

buyer wants bond for deedSo many people with poor credit want to know if they can do a Bond for Deed. The short answer? NO ….at least not with my sellers.

Although I am an advocate for Bond for Deed, the only buyer I would ask my seller to consider, is the buyer with relatively good credit, whose finance issues will be resolved in a foreseeable amount of time. For example:

  • I set up a bond for deed for a client who had to wait for a bankruptcy to ‘age’ before they could get financing. What made the deal look good was that their current credit had been nothing but good since the bankruptcy … It’s all about being able to show the seller that it’s more of a timing issue, not a poor credit issue.
  • AFHA financingnother bond for deed was a woman who wanted to buy a house I had listed. She couldn’t get the lender to give her a mortgage until she sold her house in GA which was currently being rented…. Too much ‘debt to income ratio’ for FHA guidelines. So a Bond for Deed was a perfect interim finance for her – and again, a timing issue, not a credit problem.
  • I even had a buyer couple who both had good jobs, but NO CREDIT…. When I asked how they’d bought their last car, they answered, CAbond for deedSH. Now, cash might be king at the casino, but it’s not king at your local mortgage company. We put together a Bond for Deed. Then they each got a secured credit card. In no time they had established credit with the bureaus, and the third party escrow company also became a credit source for them….  In only a couple of years, they were able to get an independent 30-yr mortgage of their own.

Bottom line – the seller should not be expected to carry a 30-yr mortgage for a buyer. There needs to be a reasonable expectation that the buyer will be able to get his own mortgage within a certain amount of time… usually no more than 36 months, 7 years at most.

If you think a Bond for Deed might be right for you, call me. I will draft an offer that should satisfy all parties, and I can recommend attorneys experienced in handling these types of sale contracts. 

JoyceAlbert@att.net

JoyceAlbert@att.net

 

About Joyce Albert

Why you need a Real Estate Consultant, not just another Agent… The difference between a real estate agent and a real estate consultant is the difference between someone who just wants to make a sale, and a professional who is willing to share with you their in-depth knowledge of the market in order to help you navigate one of the largest financial decisions of your lifetime. In my career as a real estate consultant, putting my clients first has been the hallmark of my success. I will always make myself accessible, be a good listener, and respond quickly to your needs. So if you are looking for a true professional to help you buy or sell a home in the Slidell, Mandeville, or Covington areas, please contact me. I look forward to working with you. Certified 203k Specialist I am a certified FHA-203k Specialist affiliated with the Re-buld USA program.- a program designed to assist buyers wanting to purchase distressed properties (hurricane damaged, repos, short sales) that require rehab. Accredidations -  Accredited Buyer Representative (ABR)  e-Certified  Short-Sale & Foreclosure Certified (SFR) Other Memberhips. . .  Louisiana Association of Realtors  New Orleans Metropolitan Assn of Realtors (NOMAR)  Gulf South Real Estate Information Network  National Assn of Realtors (NAR) of Realtors (NAR)  Real Estate Board of Accredited Buyer Consultants (REBAC)
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