Selling a house with owner financing

[Judy W.]

 I own a house free & clear in Alabama and I'm selling it with owner financing. I contacted an attorney and he advised me that I would need to give the deed to the buyer after the contract is executed. If things go south, foreclosing would be relatively simple. This is a new concept for me.   I am very uncomfortable giving the buyer the deed before all payments are made. Looking for advice from those investors in Alabama who have provided owner financing. Thanks. 

[Jeff Copeland]

I noticed you are in Florida. Are you perhaps talking to a Florida attorney about the sale of an Alabama property? If so, that would explain it.

The scenario you describe is commonplace in a lien-theory state such as Florida. The buyer/borrower gets the deed, and the seller/lender gets a mortgage lien and a promissory note. 

However, it's my understanding that Alabama is a title theory state. Which essentially means the seller/lender would hold title until the loan is paid off. 

See https://study.com/academy/lesson/lien-theory-state-vs-title-theory-state.html for a good explanation.