Admin

CFD-Know Your Bank!

By
Real Estate Agent with Meritus Group Real Estate SD 14808

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.

Caveat emptor!


Posted by

 

Rosalie A. Evans                                                                      

HJN Team Real Estate

101 W. 69th St.

Sioux Falls, SD 57108

Cell 605-366-7242

rosaliesellssiouxfalls@gmail.com

 

                                       

 

   

 

                    visit my site and find a home!

              Selling real estate in the greater Sioux Falls, SD area, including the communities of 

 -Harrisburg-Tea-Worthing-Dell Rapids-Flandreau- Colton-Baltic- Brandon-Canton-Lennox-Trent-Hartford-

                                   -Crooks-Colman-Garretson-Valley Springs- 

 

                    

Comments(8)

Show All Comments Sort:
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I had to read this one twice to understand.  I've vaguely heard of these types of deals, but thankfully never dealt with one.

Sep 04, 2012 12:21 PM
Rosalie Evans
Meritus Group Real Estate - Sioux Falls, SD
The Evans Group, Sioux Falls, SD Homes For Sale

Chris Ann- Also know as a land contract and not much used due to acceleration clauses anymore. 

 

Sep 04, 2012 12:36 PM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Rosalie-Sounds like the lady may have been physically intimidated too, as most "banks' don't come to your home to arrange payments. Now I can see why the "bank" would prefer this aoutomatic withdrawal to simply the payment processing, it just seems like that should have been arranged and explained efore closing.

Sep 09, 2012 08:23 AM
Rosalie Evans
Meritus Group Real Estate - Sioux Falls, SD
The Evans Group, Sioux Falls, SD Homes For Sale

Wayne- That is the thing there was never anything in writing saying that it needed to be deposited that way so she never should have been forced to do this since it is outside of her comfort level. I guess there will always be unreasonable bullies in this world! 

Sep 11, 2012 03:27 AM
Andrew Capelli
Troy, MI

Rosalie: Yikes!  What a nightmare for your poor friend!  I'm hazy on South Dakota real estate, but is your friend able to get a title commitment and have a deed from the sellers held in escrow?  Otherwise, if they're unreasonable now, she may run into problems at the end of the contract, too- I wish her good luck!

Sep 11, 2012 04:18 AM
Debbie Laity
CinaJones Real Estate - Cedaredge, CO
Your Real Estate Resource for Delta County

This is horrible that your friend has to put up with this. I hope things get easier. This is a lesson for everyone.

Sep 11, 2012 08:42 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource
Rosalie, I guess I wouldn't have tried to keep the peace...from the start...if it wasn't in the contract...oh well.
Oct 03, 2012 01:01 PM
Mimi Foster
Falcon Property Company - Colorado Springs, CO
Voted Colorado Springs Best Realtor

I'm awfully glad you're not dead, but I wanted to stop by and tell you hello and hope that you are doing well.  Let's catch up soon.

Jan 06, 2013 08:58 AM