re: Selling a house Bond for Deed

If your own the home outright its not a bad deal for the seller. You are pretty much getting paid monthly with no risk. If they breach the terms of the bond for deed contract, which is like breaching a rental contract, then you are under no obligation to them. You have not transfered any ownership in the home to them. But, if they make all the necessary payments then when the contract expires...you transfer ownership in the house to them. The ones I have seen have all been pretty short terms. For example, lets say someone doesnt qualify for financing until he has been employed for 2 years. And he has only been with currently employer for 1.5 years. He can do a bond for deed for 6 months. You get paid for the 6 months until he gets financing to pay the bond for deed off in full similar to a balloon note.