Once upon a time a women wrote a contract. The contract was with a couple who seemed normal….emphasis on seemed. This woman bought contract for deed/land contract....as in where the owners of the property act as the bank.
It started out innocently enough, the contract was written, the trasaction closed and the woman moved in. The night of the move in the lady met her “bank” for the first time. They came to the door unannounced and introduce themselves and they seemed nice and normal. They also pressed her to do direct withdrawl of the contract payment every month. They didn’t ask, they TOLD her that this was the way it was going to be. It was not in the contract that it was to be this way, but she agreed to do it anyway to keep the peace. Two days later when she hadn’t had time to show up to the bank to set it up they showed up at her home at 8am and demanded that she get in their car with them and go and set it up immediately. She was in her nightclothes and in the process of getting ready to go to a meeting but she got dressed and went anyway. She again did not want to cause trouble because she knew she would have to deal with these people and keep in their good grace.
That was the end of it until the next month when her bank screwed up the direct withdrawl over a holiday weekend. At exactly 5 o’clock on the end of the day that they thought it should be deposited they called. They wanted to meet up with her tonight and it was very important. She didn’t have time to meet as she was having company at her home but they wouldn’t take no for an answer and they showed up. She stood on the front porch praying that her guests wouldn’t overhear her reasoning with these unreasonable people.
I know this dear woman personally and this is just a few of the incidents that have occurred with her and her contract holders. She went in trusting that they would be easy to work with and she was unpleasantly surprised. So the moral of my story is that you need to do some research on any lender that you work with….traditonal bank or CFD holder. CFD is a good way to buy if you have no other way to buy but you should be aware that if you do not make your payment your contract holders can just show up instead of just being a annoying call that you don’t have to answer.