Cash for Deed Arrangement

3 Replies

A buyer wants to purchase my property using a "cash for deed" arrangement. We still have to talk but the gist is below. Has anyone heard of this? What about the water bill? I want to be as disconnected from the property as possible. Any risk for me?

You want a land contract . You get say 10% down You hold the note till it’s paid up then issue a free clear deed  . They pay all costs -water sewer insurance tax’s everything and claim it on their taxes . You become the bank and collect mailbox money with interest . Pretty sweet deal if you structure it right . I’ve bought and sold using these . Nice arrangement for both parties and everyone can win with no banks 

@Ray Harrell Understand that what you are describing is a “subject to” (subject to the existing mtg).  The problem for you is that mortgage remains in Your name.....it will affect to borrow in the future and if the buyer doesn’t make the payments on Your loan, then You get foreclosed on and possibly on the hook for any short fall.

Generally, it is never a good idea to sell sub2....unless you are desperate and about to lose the property to foreclosure anyway.


Appears they want to do a sub 2 but with a trust involved. You hold liabilities if new owner defaults as was mentioned above. If you want to fully disconnect then you want the loan paid off. Typically wouldn't be intelligent to do sub2 for a borrower/owner unless if you trusted the new buyerl and had a contract that protected you to some extent in the case of a default.