In the faith community, we often hear the term “contract for deed.” It’s commonly understood as a type of agreement that helps people in our community find ways to create wealth through property ownership. It’s important to see the pact as not just an arrangement between buyers and sellers but as a way for people of faith to adhere to the teachings of Christ in a meaningful way.

When we convert a contract for deed to a mortgage, we help fulfill the teachings of Jesus. We help one another discover financial stability through the proper stewardship of our possessions, which we’ve been given as God’s gifts.

We often tell others in church about how much we love Jesus. As worshipers and followers of His word, we know that these positive financial choices are a way to “lay up treasures in heaven.” Matthew 6:21 (NIV) tells us “‘For where your treasure is, there your heart will be also.'” When we convert a contract for deed into a mortgage, we stay true to this scripture. We value the financial gifts that God has given us.

Others who are struggling with financial hardships in Prattville should be able to take the same steps to convert a contract for deed to a mortgage in real estate. Many people who have not accumulated wealth may benefit from this process. They may learn financial stewardship, stability and security.

Spiritual progress comes gear when we view our financial situations through the lens of God’s teachings. This works in conjunction with the physical steps associated with the loan conversion process. In this way, our church community can build a stronger body that provides for God’s glory.

Christians often use the terms “mortgage” and “contract for deed” to differentiate between types of real estate contracts. A mortgage is a loan offer from lending institutions, such as credit unions and banks. Such loans are used to purchase properties.

A contract for deed is a more simple version of a mortgage. It works like a rental agreement that gives the buyer the extended use of property over a period of years. At the end of the contract, the buyer is expected to have a lump sum needed for payment. It’s not a critical aspect of this arrangement because the buyer often has difficulty saving for the large amount due at the contract’s expiration.

People in Prattville who hear about the arduous process of converting a contract for deed to a mortgage may want assurance that the process is beneficial. One of the greatest benefits of the change is that it allows the buyer to build credit.

Someone who has a bad credit score when signing a contract for deed may have chosen the method as an option that didn’t require a credit check. Since the buyer will make regular payments during the duration of the lease, the buyer can improve the credit rating and enjoy being debt-free faster.

The person who is selling property through this arrangement never takes possession of it. The contract can only be enforced at the beginning of the process, and it does not give the buyer rights to the property.

In essence, converting this type of deed into a mortgage simply means changing contract terms. It’s a good idea because of the favorable guidance in the Bible about debt. Proverbs 22:7 (NIV) proclaims, “The rich rule over the poor, and the borrower is slave to the lender.” This passage is often quoted in other scriptures, such as Jeremiah 15:10, Ephesians 6:5 and Romans 13:8. It’s clear that God wants his followers to be debt-free. Having a mortgage provides the owner with greater flexibility than a contract for deed.

For more information on financial stewardship, you can visit Consumer Financial Protection Bureau.