Well, I think any state will ‘allow’ a CFD, it’s just that they don’t all recognize these installment contracts the same way.
For example in California, you can sell using a CFD, but you still have to go to court to get your property back in the event of a default. You can’t just evict a defaulted buyer using a CFD.
That would be the reason simply to use a standard Deed of Trust in California, or any state that considers a CFD to represent a transfer of equitable interest (delivery of a deed).
This shouldn’t be confused with the effects of the SAFE ACT statutes. This is a different issue.
BTW, the SAFE ACT should be renamed as the “PREDATORY BORROWER’S ACT.” The SAFE ACT is anything, but “SAFE” for anyone offering seller financing to “iffy” borrowers.
Meantime, only predatory borrowers are ‘safe’ with the SAFE ACT.
The credit-challenged buyers are SCREWED after 2013. Nobody in their right mind is going to finance credit-challenged borrowers/buyers after the SAFE ACT kicks in.
Why? Because, if/when a seller finances one of these non-SAFE ACT qualified buyers, and the buyers default on the loan, these “iffy” borrowers/buyers are given the “right” under the SAFE ACT to demand all their money back, including their down payments.
IT’S MEAN AND STUPID for the government to both punish, and push out of the market, honest borrowers who can’t qualify for conventional financing.
The SAFE ACT again, just creates a “predatory class” of borrowers …out of thin air, that makes it too risky, if not impossible, to finance anyone with bad credit.
Barney Frank, Christopher Dodd, and all the other Marxists, and enemies of free market capitalism, can go rot in Hell (said in the nicest way possible, of course).
There IS a way around all this crap, of course.