A Contract for Deed (also known as a Land Contract) and the Promissory Note that the seller creates with a buyer of real estate is literally based upon a contract between the seller and the future owner and is not a passing of the title as is done under a sale with the creation of a mortgage or deed of trust.
The buyer does not receive title to the real property, but will become the titleholder of the property provided that all the terms of the contract are fulfilled. Even if the seller of the property has an existing mortgage and note on the property being sold, a Contract for Deed can be entered into by the parties. The seller ("the payee") can sell a portion or all of the stream of income or cash flow from the Contract and Note to a funding source. The creditworthiness of the purchaser ("the payor") is the basis for the sale of the contract and note as well as the value of the real property. However, the purchaser can have less than average credit under a contract for deed or land contract and still qualify for sale under our programs.
We can assist the seller of the commercial property by providing a lump sump of cash for the entire outstanding balance of the Contract and payoff any existing mortgage.
By contacting us at the very beginning of the transaction, we can advise the parties how to structure this type of transaction so that Capital Funding can purchase the transaction, allowing the seller to cash-out of the sale immediately.
For us to provide a bid for the purchase of your Contract for Deed or Land Contract, we will need the following information:
The Sales Price of the Property.
The Date of the Contract.
The Term of Contract.
The Amortization Schedule for the Contract.
How Many Payments Have Been Made.
When the First Payment Was Made.
When the Next Payment Is Due.
The Credit Score of the Purchaser.
The Amount of the Periodic Payments.
If the Contract Has a Balloon Payment. When Due and How Much.
Location of the Property.
Call us at 1-800-322-5985 for more information, or use this link to our CONTACT US page.
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