Contract for Deed After Bankruptcy This article will cover buying a contract for deed after you have been through a bankruptcy or if you are currently in a chapter 13 restructure payment plan. You can read our article if you already have a bankruptcy on your credit report. For those wondering if they can buy a contract for deed after a bankruptcy I would say that you can with most sellers. Most people that buy a contract for deed have bad credit and they have a low credit score below 550. Landlords and contract for deed sellers understand that a buyer has some hiccups in their credit from the past few years. I believe that where the buyer and seller will notice the biggest factor in the contract for deed transaction is with how long they set the balloon term. You’ll see that the contract for deed terms will need to be set to about 2 years or more, so that the buyer has enough time for the loan approval process, in which they can be approved for one of the recent loan programs if they were to try to get financing within the first 12 months. If they wait over 12 months they are more likely to get refinancing. Most lenders will want to see the buyer on the title for over 12 months to be able to use the appraised value and do a refinance. It’s important to note that some bankruptcies have almost immediate discharges and allow for a loan sooner than one that stays in a repayment plan. Please check with our mortgage broker as to how long you’ll have to wait to get financing for …

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