After purchasing the home, the investor pays off the debt, sells the home back to the original owner on a contract for deed, and gains the equity from the transaction. In addition, during a period of particularly high interest rates, a seller may want to enter into a contract for deed, in the hopes that offering a discount on traditional rates will draw more potential buyers. The buyer should also make sure that the seller is the true owner of the house by checking with the county recorder's office to see who is listed as the registered owner. Nonetheless, this alternative financing mechanism lacks many of the protections afforded borrowers who have traditional mortgages. Is carried by the Purchaser in the names of all parties-Seller, Purchaser, and Mortgagee(s). BEAUTIFUL Executive Style Home with 3bd / 3 ba plus office, gourmet kit, high ceilings, hdwd floors, landscaped bkyd. Ready to build your dream home?? MASTER BEDROOM MASTER BATHROOM GRANITE COUNTER TOPS LARGE PANTRY OWNER FINANCING AVAILABLE, WITH BOND FOR DEED. Lawyer must be part of our nationwide network to receive discount. Closing costs may be less as well, for the same reasons particularly if the deal was worked out with no real estate agent involved. Bond for Deed Law and Legal Definition | USLegal, Inc. Incorporate for FREE + hire a lawyer with up to 40% off*. For example, if a homebuyer missed a single payment 15 years into a 20-year contract for deed, the seller could cancel the contract and retain the title and all the previous payments, while the buyer would suffer a substantial loss. Owner financing & bond for deeds often result in fast closing. According to figures from recent American Housing Surveys, while only 5 percent of all owner-occupied households in the U.S. had contracts for deed in 2005, 9.5 percent of Hispanic owner-occupied households and 7.1 percent of black owner-occupied households across the country used them.1/ (For more figures on the use of contracts for deed, see the table below.)

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