What is a CFD? - Posted by Paul Strauss

Posted by SCook85 on February 05, 2001 at 21:57:55:

CFD is a contract for deed also known as a Land Installment Contract. This is similar to a wrap around mortgage but not the same.

A CFD gives the buyer equitable title to the property but does not transfer the deed. There are drawbacks to doing wraps as opposed to a CFD, but they vary by state.

Hope this helps.


What is a CFD? - Posted by Paul Strauss

Posted by Paul Strauss on February 05, 2001 at 21:25:11:

How exactly does a CFD work- in general terms? Is it the same as a wrap? Where does the DOS clause enter into it?


Re: What is a CFD? - Posted by John Burley

Posted by John Burley on February 05, 2001 at 23:06:40:

Hello Paul,

A CFD is a Contract for Deed.

For clarification a “Wrap” is not a document or a form of agreement. A “Wrap” is a concept. The idea is that you take control of a loan (either new or existing) and then remarket the property (CFD, Agreement for Sale, Land Contract, Lease Purchase, AITD, etc.) for a monthly spread (the difference between your payment and the new occupants payment).

The due-on-sale-clause (as I believe you are referring to, enters into the lenders ability to “Call” a loan bsed on how the loans control was transferred. This can vary tremendously, however if you will respond with specific details, I will answer.

Good Investing,

John Burley