Contract for Deed is another name for Subject To. You may want to post this question there if one of the moderators doesn't move it into that forum.
In a nutshell, a contract for deed says the current owner will continue to make the payments on their loan, but you will pay them the amount of the monthly payments. The goal behind this methodology is to avoid the Due on Sale clause found in most Fixed Rate mortages.
Someone else who understands this better than I do, please feel free to correct me where I have misunderstood this method.
HTH,
As I understand it, a contract for deed is where the owner carries the mortgage. You have a set APR and term. Each payment made goes toward P & I.
Lease w/ option to purchase gives the leasee the option to purchase the property. In a contract for deed, when the contract is paid for, the deed gets handed over...
Hope this helps
A contract for deed is very different from sub2! Sub2 - you get the deed, and comply with the terms of the existing mortgage on the property. A great way to acquire properties and used often by several investors.
Contract for deed. - Owner financing No traditional qualifying for new home buyers. Often a short term contract lasting only a few years, at the end of which. upon satisfaction of the terms of the contract for deed, the new owner gets title to the property.
large difference. Sub2 = title right away. CFD = title after satisfying terms of contract.
CFD used often by investors to sell properties.
Option - basically an agreement stating that the seller will sell to you for XXX when and if you decide to purchase, IF the property hasn't already sold when you get around to making up your mind. When you get an option, there is usually a small $ amount given as a non-refundable deposit. If you excercise your option,(buy the property) then you acquire the property per the terms of your offer. After which the property and the financial responsibilities that it carries with it are yours.
Jeff
Contract for Deed is another name for Subject To. You may want to post this question there if one of the moderators doesn't move it into that forum.
In a nutshell, a contract for deed says the current owner will continue to make the payments on their loan, but you will pay them the amount of the monthly payments. The goal behind this methodology is to avoid the Due on Sale clause found in most Fixed Rate mortages.
Someone else who understands this better than I do, please feel free to correct me where I have misunderstood this method.
HTH,
Robert
[addsig]
As I understand it, a contract for deed is where the owner carries the mortgage. You have a set APR and term. Each payment made goes toward P & I.
Lease w/ option to purchase gives the leasee the option to purchase the property. In a contract for deed, when the contract is paid for, the deed gets handed over...
Hope this helps
A contract for deed is very different from sub2! Sub2 - you get the deed, and comply with the terms of the existing mortgage on the property. A great way to acquire properties and used often by several investors.
Contract for deed. - Owner financing No traditional qualifying for new home buyers. Often a short term contract lasting only a few years, at the end of which. upon satisfaction of the terms of the contract for deed, the new owner gets title to the property.
large difference. Sub2 = title right away. CFD = title after satisfying terms of contract.
CFD used often by investors to sell properties.
Option - basically an agreement stating that the seller will sell to you for XXX when and if you decide to purchase, IF the property hasn't already sold when you get around to making up your mind. When you get an option, there is usually a small $ amount given as a non-refundable deposit. If you excercise your option,(buy the property) then you acquire the property per the terms of your offer. After which the property and the financial responsibilities that it carries with it are yours.
Jeff
buy sub2 sell cfd