CFPB Applies Mortgage Rules to ‘Contract-for-Deed’ Home Sales

Home purchases using a type of financing known as “contract for deed” are covered by federal mortgage protections, the Consumer Financial Protection Bureau said in a new advisory opinion.

Contracts for deed are a form of home sale where the owner of the home finances the purchase and a borrower pays the seller directly without a formal mortgage. The buyer gets the deed to the home only when all payments are completed, which can take decades in some instances. Buyers can be evicted for a missed payment, causing them to lose the down payment and any money they used to ...