In today’s real estate market, the lending guidelines are so tight that normal blue collar people cannot qualify for a loan to purchase a home.  Due to these tight lending guidelines, the market is suffering tremendously and sellers have very few options.  One option that is shining enormous light on the situation is seller financing, also known as “agreement for deed” or a “land contract”. 

In a typical seller financing or agreement for deed, the seller/owner sells the property to a buyer for an agreed upon amount of money.  In essence, the seller is the bank.  The buyer makes a down payment then the monthly payments to the seller.  The seller does not transfer the title until the loan is refinanced or paid in full, thus the name “Agreement for Deed”. Read the rest of this entry »