ProPublicaA few years ago, some lending firms began offering an “interest free” way to buy a home. Word spread in #Minnesota’s #Somali community.
But "contract for deed" or seller financing lacks protections for buyers. Until final payment is made, the seller holds the deed & can cancel the contract if the buyer falls behind. If that happens, the buyer forfeits all $$ they’ve put in. The seller could then evict the buyer after as little as 60 days.
By @lussenpop & Joey Peters
https://www.propublica.org/article/how-contracts-for-deed-put-families-at-financial-risk?utm_medium=social&utm_source=mastodon&utm_campaign=mastodon-post
Real Estate Investors Sold Somali Families on a Fast Track to Homeownership in Minnesota. The Buyers Risk Losing Everything.
For Somali Muslim families in Minnesota, a contract for deed seems like an easier path to homeownership. But predatory practices and poor regulation can make it a financial trap rather than a good deal.
Patty Bluebird 🦩