Contract for Deed vs Deed of Trust
Looking to possibly sell a rental house to its current tenant using seller financing in MS. My initial thought was to do a contract for deed. My understanding is that foreclosure would be easier and less expensive if the borrower stopped paying even though we'll have to retain title for now. When I started calling real estate attorneys in MS about this, I was strongly advised against doing a CFD because of litigation risks in the event of foreclosure. Talked to 2 different RE attorneys, both said the same thing... go with a deed of trust or do a lease option. For the note buyers that have had to do foreclosures (I'm assuming everyone has), have you ran into more or less problems with CFD's? Have you had any problems in court with these? Do some note buyers avoid CFD's altogether?