Hi Mike-

I would recommend speaking with a mortgage company. Jeff Jannasch is Executive Vice President of Town Square Mortgage and a very reputable and knowledgeable mortgage representative. His number is (972) 292-7599 or email jjannasch@townsquarefinancial.com

I refer most of my clients to him and hear nothing but praises back on how professional and honest he was through the process.

CFD transactions are rare and some are still executed up north. You have several other options available to you. Call me and I will be happy to help you.

Sherry Renfroe
Ebby Halliday Realtors
(214) 215-4145 Text or Talk
sherryrenfroe@ebby.com http://www.sherryrenfroe.com

This is not really common practice any longer and I would recommend you avoid selling your home that way. I would speak with a real estate attorney as there are other ways that protect both parties a lot better than CFD. If you do move forward with you should speak with a lender to see how they will handle it. You may want to consider a lease with an option to buy. This way you may be able to write off the lease payment but most lenders want prior landlord experience with this option.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com

There are a lot of legal pitfalls with CFD, so if you are going to do something like that, make sure you are using the assistance of a real estate attorney to draw up the documents.

The biggest question would be is do you still have a mortgage on the property? If so, I'm betting CFD would trigger any "Due On Sale" clause that you have in your mortgage. If so, you are walking on fire. This is why most people use CFD, and the reason that there is a LOT of litigation around CFDs. Picture this: You sell through CFD, collect a down payment, and a number of monthly payments. Then your bank comes and says that they are using the due on sale clause, and you either have to pay the full balance of the loan or it will be repossessed. You can't pay the full amount, so they repossess and the person that bought your home is screwed. They are going to come after you legally and they will win.

If you do not have a mortgage on the house currently, then it doesn't affect your ability to get another mortgage since there is no debt tied to the home. However, if you are counting on the income from the CFD for the new mortgage, think again. Most banks will not count that as income for the purpose of calculating your debt to income ratio. You will have to depend on your current documented income in order to qualify.

If you don't have a mortgage, CFD is still a bad option to sell your home. You need to speak with a real estate attorney at the very least. None of what I said above should be construed as legal advice, just my opinion.

Brian Rayl
Keller Williams Elite
972-949-4222
Brian@Rayl-Estate.com
http://BrianRayl.com

CFD's, long-term lease options, etc. are executory contracts in Texas and as such they fall under a great many regulatory requirements. As a seller, you are assuming a great deal of liability in executory contracts so you should consider other options like a straight owner finance. Even if you transfer title to a new buyer, it won't relieve you of your liability for the underlying mortgage and it will be used in debt to income qualifications. If your income is high enough and your debt low enough, you may still be able to qualify for another mortgage but you will need to seek a competent, seasoned mortgage professional in your area to discuss the details.

More than likely you would be required to wait for approx. 2 + years prior to purchasing another home. Recommend to speak direct with mortgage broker.

If you not SOLD you home happy to offer assistance.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
972-699-9111
http://www.lynn911.com

Don't ever sell your house Contract for Deed. That's the old days. Every good real estate attorney I know says never ever do that these days.

Probably best to talk to your loan officer about this to see how they will show the debt.

Interesting question. Haven't heard of too many people doing this. The new debt will be used in calculating your debt to equity ratios, etc. If you want to talk to the lender in my office, call Rita Lewis with Coldwell Banker Home Loans at 972-989-3707. Rita will be able to share general info with you over the phone if you provide her your general financial info. Let me know if you need further Real Estate assistance to navigate through this. Jane Yeatman 972-679-6345 Coldwell Banker Residential Brokerage

I am not sure what CFD stands for? Cash for Deed? If you are referring to a deed in lieu of foreclosure that is typically looked at as a foreclosure on your record from what I have seen. The best thing would be to speak with an experienced loan officer to see what they say about it. It may depend on if you have fallen behind on any payments or other credit issues. Have you tried a short sale? I would recommend at least trying it before the deed release back to the bank. SS is better on the credit then foreclosure. But to answer your question, meet with a loan officer that knows what they are talking about.