Seller-financed contracts skyrocket, but so do gripes

  • Article by: JIM BUCHTA , Star Tribune
  • Updated: March 18, 2012 - 6:42 AM

An alternative financing form, contracts for deeds are becoming increasingly popular among people who might not otherwise qualify for a mortgage. But buyers need to be cautious of their terms.

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mom2fourMar. 17, 12 8:06 PM

Contracts for deed can be beneficial to both the buyer and the seller, depending upon the needs and circumstances of both. The seller can gain income from his property and the buyer can get financing where otherwise he might be unable to. As is always true, contracts can be written any way that the parties can agree on - as it should be. Buyer and seller alike need to be aware of what they are agreeing to when signing the contract.

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livefreeordMar. 17, 1210:04 PM

mom4four nailed it. There isn't a valid knock on Contracts for Deed in the article. It is simply a contract between two people for a deed to a property. It can be written with any terms that are mutually agreeable. We'd be a lot better off with more of them and fewer FHA loans with little to no down payment required.

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sblodenMar. 18, 12 1:15 AM

Here we go again!

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fromupnortMar. 18, 12 7:26 AM

If you are a legitimate buyer looking for a home to live in (not flip for a quick profit, not get a rent free home for three months) you can find a legitimate seller who wants to sell you a home with a legitimate contract. The people who have trouble with these kinds of things find trouble in everything they do, because they are working an angle and consequently scare away anyone who could help them legitimately.

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vlombardyMar. 18, 12 8:13 AM

90% of the financial wealth in the country is owned by 10% of the people. These people are the ones who bet many times the world's GDP on financial derivatives, and lost. This is why there is no money left over for the vast majority of people to buy anything without going into debt.

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wndwmkrMar. 18, 12 8:45 AM

Why worry? I mean the Libs will bail out anyone trying to work the system and those that work hard will be left in the canoe without a paddle in the cold.

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bondlakeMar. 18, 1210:36 AM

So the lawyer working for Legal Aid bought on a contract? She had bad credit, too?

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chuckdancerMar. 18, 12 5:19 PM

Although for some it may seem reasonable to leave these contracts lightly regulated, I think that reality is people need to work with these in an environment that ensures balance for the parties. MOst people are vulnerable to mistakes because they simply don't have the experience or knowledge to understand all the traps that they can encounter. It is a benefit to society to balance transactions. Of course people that benefit at the expense of another party just want the money and never will admit that the "losers" made the deal based on ignorance. Profiting from ignorance is nothing to be proud of.

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greatxMar. 18, 12 6:03 PM

vlombardy: "90% of the financial wealth in the country is owned by 10% of the people. These people are the ones who bet many times the world's GDP on financial derivatives, and lost. This is why there is no money left over for the vast majority of people to buy anything without going into debt." --- Your idea that there is no money left is idiocy. If one saves instead of buying crack and alcohol anyone can own a home.

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ankapolMar. 20, 12 9:59 AM

Contract For Deeds should not be entered into lightly, without reading and understanding all the terms. They can be a useful financing tool but the buyer needs to enter into them 'eyes-wide open.'

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