"Would Your Client Consider a CD?"

Low Rates . . If You Qualify

Last year, I heard that question from would-be Buyers maybe 3 times.

This year, I've logged that question three times . . . just this week!

And that, with mortgage rates plumbing all-time lows: just above 4.5% to those with impeccable credit.

Which, of course, is the catch.

Few Sellers Biting (So Far)

Buyers float seller financing, like a contract for deed, precisely because they can't qualify for a mortgage.

Their credit scores may be too low (or non-existent); they may have filed for bankruptcy recently; or they may not have any money for a downpayment.

Unfortunately, all those yellow flags are problems for home sellers, too -- especially the one about limited funds for a down payment.

That's because the risk to the Seller who accepts a Contract for Deed is that the Buyer doesn't perform, and the Seller gets back a property that's much the worse for wear.

On top of that, most Sellers are selling because they need the cash, in one lump sum -- not in monthly payments stretched out over years.