How would a buyer in a Contract For Deed transaction refinance and payoff the seller when the balloon comes due. Since title is held by the owner, how would the buyer be able to refinance?

Someone else here may have more experience with this but I think that the lender would just have to see the contract. In my state (Texas) a contract for deed should be recorded in the public records so a title search will show it.


As the name implies Contract for Deed, meaning when the terms of the contract are met then the buyer receives the deed from the owner.

So, if the buyer is financing the property then the owner will sign over the deed when he receives his money from the new lender. This all would be handled in escrow.

John $Cash$ Locke

I heard that some legislation back in 2000-2001 pretty much killed CFD in Texas.

Yes sir. Since that time I have seen a few but none of them were done correctly.