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harryho · Sep 26, 2009, 05:19 AM

Hello,:)
I'm planning to buy a house with long term owner finance (30 years).
The investor said that he will give me a contract of deed arrangement by the closing date.
My question is what's the differrent between contract of deed and contract of deed arrangement,what I understand is the contract of deed will be record my name and I can file for income tax by the end of the year but what about contract of deed arrangement?
According to the seller explained it will be the same...
I don't know if the seller is right on this.
Is anybody ever get this contract before... I need your help out there.Thanks

Fr_Chuck · Sep 26, 2009, 06:04 AM

No, a contract for deed is just that, a contract that will give you the deed, you are not the recorded owner and the original owner is still listed on the deed at the court house. Some states allow you to record your contract that will show lenders there is a contract on the home, so they can't sell it to someone else ( out from under you) but the original owner is still free to get new mortages on the property unless that is a term in the contract. And no you don't get the tax benefits on a contract for deed.

Both to my understanding are the same thing, just different wording, some states in the US have restrictions on contract for deeds.

If you want the benefits of buying the home, the seller has to actually sell it to you, put the deed in your name and hold the mortgage. *** really sell you the home.