Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Where They Belong

Terry Newman & Sandy Garcia, TDHCA

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Jesus and Inez M., El Paso TX
HOME Contract for Deed Conversion Program
Photo: Terry Newman & Sandy Garcia, TDHCA

Parents want to provide a good home for their children. Jesus and Inez M. wanted to do just that so they entered into a Contract for Deed on November 11, 1993 to purchase raw land at the Mission Trail Estates Colonia in El Paso County. The loan amount was for $15,500 at an interest rate of 10.5%.

At the time, Jesus and Inez were not aware of the loopholes associated with a contract for deed, such as not having a legal title to the property or having no equity in the property. After a few years of paying for the land and trying to build a home, they became all too aware. They became increasingly concerned they would never be able to make all of the payments under their contract for deed and, worst of all, would not be able to provide an inheritance to their children.

In 2008, they learned about TDHCA’s HOME Contract for Deed Conversion Program (CDCP) administered by Adults and Youth United Development Association, Inc. (AYUDA). AYUDA is a grassroots organization that also provides a variety of services for Colonia residents.

AYUDA helped the Jesus and Inez research and compile documentation required to complete the CDCP application. To their great relief, the contract for deed was converted into a traditional mortgage and the family replaced their substandard and unheated cinder block home with a new stick-built home. Above all, AYUDA helped the Jesus and Inez build equity for their children’s future.

“The home is full of love and we are taking time to decorate it and fill up the house with furniture,” says Inez . “Plus, the kids don’t have to go to their grandparents house every time it gets too cold. They can stay here where they belong.”

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HOME Contract for Deed Conversion Program