It has been decades since I’ve heard talk of contract-for-deeds. But lately, in-office meetings, or out working on transactions, people are proposing this seller means of financing as a way to put a transaction together.
I suppose favorable interest rates have kept private parties out of the financing business for the last dozen years or so. With mortgage rates at new highs, there is an opportunity for investors to pick up a decent return, even with the risk of getting the house back.
Years ago they were used not only for people who were unable to qualify for a conventional loan but also for timing purposes. A retiree liked the idea of selling on a contract and receiving quarterly land payments. That way their tax burden was spread out over time instead of boosting their obligation all in one year.
Overall most consumers seem to prefer the impersonal interaction of working with a commercial lender. But when a need arises, it’s nice that entrepreneurial responses crop up and fill in the gaps.
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