Yay! It closed and we think it was a win-win deal.
The seller got a 'qulaified' buyer and the buyer got a great deal on the house. The buyer would never have qualified as he was in the construction business and the last two years ate up his great credit. He had a terrible credit score but did have a great job with growth potential/stability. The seller is taking a chance, yes, but the buyer in all aspects appeared to be a solid citizen that had fallen on hard times. The seller is preventing the buyer from re-financing or selling the home for three years UNLESS the buyer pays the equivalent of three years of interest.
We will check with the seller in a couple of months to see how the buyer has abided by the terms of the contract as far as paying the mortgage on time.