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Borrowing against a Contract for Deed are land contract

Posted on: 04th Dec, 2013 03:53 am
I have 9 houses and a budget motel that are all 100% paid for with no liens of any kind. I have 3 mortgages on my own persona; home that I live in. I have a FICO score of 782 and I still can not get a loan by using any (*or all) of the C4Deeds to these properties as collateral on a mortgage or any type of loan because they are all sold Contract for Deed and every bank tells me they will NOT loan me any money. Even though the C4deed vendee ((the buyer) would agree to subordinate their 1st position. Yet these same banks are all happy to give me another credit card with a 0% .interest rate for 18 months. I do not understand how bankers think? I understand that the C4deed clouds the title but why would they not want to loan money using the C4Deed contract itself as collateral? If a bank held a C4Deed that had a balance of say $71,300.00 and a balloon payment due for the full balance in two years, and I could prove that the home buyer has a perfect payment history with me and was never once late on a single payment and the interest on C4Deed is 8% amort on a 25 year schedule with a 5 yr balloon and the property being bought c4deed will appraise for over $104,000.00 and I am only asking to borrow $25,000.00 using the contract as collateral and a quick trip to the county recorder'
s office will show that the title is totally clear and the property taxes have been paid and the C4deed has been properly recorded. Why do banker's flatly refuse to loan a single dollar with the C4deed as collateral even though I have yet to have one explain why they will not? . I try to explain that this loan would be at least 5 times safer than a loan that was secured by a cash CD held in their own bank because the best they can do in the event of default with a cash secured loan is to get their principle back. But with the loan I am suggesting, the bank would profit hugely and many times the amount they invested by funding the loan (.$20K) .IF I WERE to default. I must be missing something or else bankers are not able to think logically or the are required to have extremely low I.Q.s . Am I Right?
Hi Bruce!

Welcome to the forums!

You may be right but it should also be noted here that banks have their rules and regulations and they will not go against these rules to provide you with a loan. It will be better to get in touch with a private lender and check out if he can provide you with a loan.

Feel free to ask if you've further queries.

Sussane
Posted on: 04th Dec, 2013 07:36 pm
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