My own experience is that the problem is the buyer can’t qualify for a loan, else why would the seller bother with it?? ( no, I’m not actually asking why ;) What I’m saying is that so many people are overextended w/o realizing it, and a seller just wants out with some payments because CFD is “easier”. Whammo, 3-5 years later, shockingly, issues arise and it falls apart.
In this case, why be in debt to family? What if they need money later or some such...and they start eyeing the friend’s CFD deal as a problem- “ oh, if only we could just sell the old place and be done with it.” Lo’ and behold, friend has 4 kids, bad credit, and not a prayer of financing out of the CFD. Voila. Issues. Had nearly this exact conversation less than 90 days ago with family.
Also, I would not expect to get a good buy on CFD because it’s seller financed. They have all the cards. Are they skipping the inspection and appraisal, too? Is it discounted accordingly?