Things to notice when buying a CFD

[Michael Vaughn]

I was recently sent a tape of only CFD loans and I am trying to understand the difference between that and a regular mortgage.

From what i understand the difference between a CFD and a regular mortgage are (correct me if I am wrong) Are:

• If the borrower defaults it does not matter how much money he paid so far, he loses the house
• It is more easier to take possession of the house in a process called forfeiture (unless a certain amount of time has passed in some states, then a normal foreclosure is still needed)
• Usually these houses will be in worse shape, worse neighborhoods then it would have been was it a normal mortgages since the people who take these loans could not have taken a normal mortgage, hence they are not doing well financially 

Are there any special things to look for during the due diligence phase of buying a CFD that are not done with a regular mortgage?