The difference is… - Posted by WilliamGA
Posted by WilliamGA on June 24, 2001 at 10:16:01:
A sub-to deal is where you actually “get the deed” to the house. The seller actually signs over a deed NOW to you or a trust. The loan will still in most cases remain in the seller’s name and on their credit reports. This is the preferred way to buy the house. You have more control in my opinion.
A Contract For Deed is where the seller keeps the deed in their name until you fulfill some stipulation in your contract, usually payment in full. You get “equitable title” in this case. The seller retains “legal title”, sort of like when you buy a car. A seller who is very concerned about your ability to pay on time may be more likely to go for the CFD.
From the sound of the situation with your seller, I would really go for the deed. Sounds like they would go along with it if it is presented right.