real estate


Question by  billyanddaw (15)

What is involved with buying a contract for the deed if you are a new homeowner?

I am a new home owner and was told I need to buy the contract for a deed for my new house.


Answer by  Jodie (551)

"Contract for deed" is essentially owner financing. You do not get the property deed in your name until the last payment is made. Also, if you miss a payment you can be evicted with no questions asked. You need to think seriously before you agree to this type of contract.


Answer by  tamarawilhite (17883)

Note that you have fewer legal protections buying a contract for deed instead of a mortgage. If you miss a payment, you may lose all rights to the house and all money put in payments, compared to owning equity in a house with a mortgage.


Answer by  nekturk (139)

This sounds suspicious. A contract for deed occurs before buying a home, and it is the contract that the buyer and seller sign outlining the terms of the purchase; it is also called a Purchase and Sale agreement.

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