re: Profit or Pitfalls of Seller Financed Home Sale

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A bond for deed is the most secure form of seller financing, as long as the down payment suits your immediate needs and makes the process worth it for you financially. This form of sale is good for buyers who have money and steady income but have taken a hit in their credit that disallows financing for some reason. Per Lousiana law, as long as they meet your down payment and monthly amortization schedule and loan term as agreed upon by both parties, there is no way for the seller to lose. If they miss one payment beyond 45 days the whole amount previously paid and the deposit will be forfeit to the seller. Even if they pay down payment at closing and every note for 9 years and 11 months- if they miss the last one beyond 45 days the entire amount paid and the deed will go back to the seller.

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