Posted by Larry(Mo) on July 24, 2001 at 18:15:42:
Steve, A contract for deed is exactly that. A contract
between the buyer and the seller that promises the deed to a property when all payments are made.
It is a vehicle for obtaining properties thru
unconventional financing but it is much better for the seller than the buyer.
I have several houses out on contract and it works
fine for me.
I bought one on contract about 2 years ago and the seller then offered me a discount at a later date
to buy the contract.
If you are buying on contract and the seller has an underlying loan i would use an escrow service to insure
that the seller is making payments which if foreclosed on could put you in a difficult situation.
Hope this has helped you Best of Success!! Larry