Important Facts for Contract of Deed Buyer

Posted by highlandsmanagementservices on September 11th, 2018

Own house is a dream of everyone but not many are fortunate enough to own one. People tend to search for alternatives to find their new abode. One of the most profitable alternatives that would satisfy the need for a new abode is a contract for deed.

Contract of deed buying is a method where instead of any financial institution or commercial bank, the seller finances the entire procedure themselves. This helps to strengthen the real relationship between the seller and buyer which further adds on to the goodwill of this market. This method of financing would help a varied range of audiences in acquiring their dream homes.

Mortgage notes are a widely used method of payment that in recent years have gained a successful name in the money market. Which helps in selling the business note instead of liquid cash? This kind of financing method also allows more people to invest in and grow this sector.

Contract of the deed is an easy method too that is also less expensive. If any buyer fails to pay the installment, then the seller cancels the contract right away. Hence no legal obligations are attached to this kind of contract. The terms and meaning are also easy for the buyers to comprehend which leads to fewer complications and easy understanding. Not only so, the contract of the deed is a fast and simple procedure with less or no headache.

Contract of deed buyers has expanded over the years by enhancing this specific sector over the years.

In the time of need of fast cash, it is really easier to liquefy making the sell of the contract of the deed.

The occupancy right of the buyers is a beneficial term in this deed.

And also the buyer is eligible for tax exemption benefits, making a contract for deed, a much popular money alternative.

However there are some major risks for the buyer of Contract of deed as, if one falls behind the payment of installments, the seller can opt to file a Notice Of Cancellation Of Contract Of Deed, and the buyer gets a 60 days’ time window from the date of filing the suit, to clear the dues along with the interest of principal amount to maintain the contract as normally as it was being maintained previously. It is a short span of time when it comes to repayment of installments.

Another risk is the balloon payment.

As this contract of the deed is not fully amortized unlike most mortgages, here’s an existence of ‘Balloon payment’. It is the last payment of the installment sum. The Balloon payment confirms the final possession of the house until it is done; the seller enjoys the ownership of the house. So sometimes this Balloon payment becomes a headache to many.

So if you are thinking “How to sell my mortgage note” or “How to sell my business note”, Highland Management Services is the one-stop premium solution for all your questions. With their efficient dealers, you will always be able to crack a good deal.

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Joined: November 13th, 2017
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