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Contract for Deed Credit Report

This article is about your credit report and how it relates to a contract for deed.  Although your credit report and history may reflect that you have bad credit, this doesn't stop you from buying a contract for deed in many cases.  Your credit report may reflect a bankruptcy, collections, foreclosure, judgment, late payments, and short sale.  If you have any of these on your credit report you can work with a credit repair company,
and they can help you improve your credit score and remove negative items in many cases.  Just remember that you can buy a contract for deed after bad credit.  It's true that many homeowners and sellers will do a credit check, and want to know your credit score for contract for deed.  Your credit score doesn't play as big of a part until it's time to get approved for a loan.
    A seller may check a credit report to see if their are any collections or even judgments that will attach to the property.  From my understanding a lender will want a judgment paid before the closing of a loan.  Also my understanding is that the judgment merely is attached as a lien to any real asset just as a way to collect if the property was ever sold.  My understanding is that if a contract for deed was canceled than the judgment
would detach from the property since the buyer doesn't own the property anymore, please verify this with your attorney or ours.
    If you are ready to search for a property please see our contract for deed homes for sale page.  Your goal is to take what is on your credit report and remove the negative items, build positive credit lines, and after 12 months a lender will evaluate if they can approve you for a refinance of a contract for deed.  This is your end goal, this will take the seller off of the mortgage and payment obligation.  Some sellers own their home
free and clear, so in this case it will be a different scenario.  Our contract for deed real estate agent will help you with the entire contract for deed process and questions from looking at homes up until closing day.
Your credit report and history may play a bigger part with contract for deed vs rent to own and vs renting, since the seller is actually giving up more rights to their home and selling their home.  We've written an article on the many tips of making contract for deeds work for you.
    One thing that I can't emphasize enough is how much you can drastically change your credit score by working with a professional.  I've had clients close homes with a 150 point jump in a credit score in only 6 weeks time.  Each scenario will be different, for some you will need to remove negative items, for others it will be more about creating positive trade lines.  Most credit reports are full of errors, even if they are just very small errors, this is why it's so important to always look at your credit report to keep it updated and accurate all of the time.  Lenders will check your credit report through 3 of the major credit bureaus
which are: Equifax, TransUnion and Experian.  You should also be aware of your FICO score which was the first official formula used as a proprietary credit scoring formula because many lenders use this.  I've written an article on MN homes that are for sale that you may read by visiting: contract for deed Minnesota, this article walks you through the process step by step and how it works with an agent.

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