What is a Contract For Deed (CD, C4D or ‘Seller Financing’)?

Chad Banken
Published on December 7, 2021

What is a Contract For Deed (CD, C4D or ‘Seller Financing’)?

After the housing market crash in 2009, new mortgage lending regulations were implemented to prevent similar future issues. Most of these new rules were beneficial in protecting homebuyers and helping ensure predatory lending practices would not cause similar events in the future.

However, these new regulations had a negative impact as well in that many financially stable homebuyers were unable to obtain a mortgage. This includes buyers who:

  • Are self-employed
  • Earn a majority of their income on commission, tips and bonus’
  • Have lingering credit issues from divorce or medical debts
  • Had severe credit events such as foreclosure, bankruptcy, or a short sale

The new regulations may have helped in some traditional lending markets, but ultimately prevented some families from obtaining stable, long-term housing and financial security through homeownership.

Where does ‘A Good Deed’ Contract for Deed help?

A contract for deed by definition is ‘seller financing’. Historically, a seller would provide the financing to a buyer for a few years or even decades! 30+ years ago, contract for deeds were more common when mortgage lending was less accessible.  In today’s market, less than 1% of home sellers are willing to consider a contract for deed. So ‘A Good Deed’ Contract for Deed provides a unique approach…

Once a buyer is pre-approved for ‘A Good Deed’ Contract for Deed, they will shop for a new home with their realtor just like any buyer paying cash or buying with a mortgage.  Once a desired home is identified, the buyer will make a contract for deed offer to A Good Deed….just as A Good Deed will make an offer to the listing agent/seller. The offers are dependent of each other and if successful, will eventually close on the same day (A Good Deed buys from current owner….and sells to the contract for deed homebuyer). 

Let ‘A Good Deed’ help get your family into a home. Contact us today to discuss if you qualify for A Good Deed Contract for Deed.

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Contract for Deed Questions?