Photo Scanner: Bond For Deed

Sunday, 11 November 2012

Bond For Deed

A bond for deed is a contract to sell real property in which the purchase price is to be paid by the buyer to the seller in installments and in which the seller, after payment of a stipulated sum, agrees to deliver title to the buyer. It may also be called a "contract for deed" or a "Land Contract". A Bond for Deed is actually a Deed in Trust and is used as a type of owner financing. It is in fact, an interim finance program whereby the deed is held in trust by a bonded attorney. Once all terms of the purchase contract have been fulfilled - the buyer has obtained his own mortgage, the seller's mortgage has been cancelled, and the seller has been paid off in full - then the deed will pass to the buyer. With banks tightening their credit, and more and more consumers with impaired credit due to employment layoffs, etc., it is getting increasingly difficult to find qualified buyers. Under the circumstances, sellers who do not necessarily need to ‘cash out' their equity, may find their home to be a terrific income/investment vehicle.