CFD
Hi, I have some property about 9 acres with a cottage. I listed on ebay for a quick sale, I had so many people email me re the property, but no one bid. One guy wants me to take a CFD with small monthly payments. I have no mortgage on the property. Well, you guessed it, what is a CFD? 
Hi,
CFD=contract for deed. They will pay you as if you are the bank, sign a contract to pay you for your deed to the property.
Kelly
Thanks so much for your reply, How is that different from rent to own? Somehow it seems to have more risk attached. Eviction vs foreclosure is months. It seems large down payment, substatial monthly and short term is the only way to cover the risk. Of course, if he owned the property, I would have no liability to damages to it either. If I took a CFD, then could I sell the mortgage to someone else to get cash out, or would I have to take a big cut there too?
jbtb990,
Usually in rent-to-owns the seller will apply a portion of each month's rent as a credit towards the purchase price. With a contract for deed the buyer pays every month until a set level is reached before the title is transferred to the purchaser.
It used to be that a contract for deed was beneficial for the seller because the title was retained and it was easier to take back ownership of the property; new laws have since made that more difficult and have effectively made contract for deeds rather unfriendly for the seller.
It seems to me that you would be better off with simply carrying back a note. If you do carry back a note and are interested in selling part or all of the note in the future please feel free to contact me: engmant@yahoo.com.
I would also be happy to help you with structuring the note to make it more marketable and help you get the best price.
Tim[ Edited by engmant on Date 05/27/2003 ]