You may have read the New York Times article entitled Contract for Deed Lending Gets Federal Scrutiny. The Times reported that the Consumer Finance Protection Bureau (CFPB) is looking into whether a commonly used technique for the sale of residential real estate known as a Contract for Deed or Installment Sale Agreement may violate federal Truth in Lending laws. It is speculated that the CFPB is focusing on the increased use of this technique and abuses in the marketplace that target lower income buyers.
Up to now, the CFPB has focused on institutional financing and has not focused on the individual sale of houses by homeowners. The recent interest in these matters may be based on what the Times reports to be a widespread use of this technique in the mid-west and south where there are a large number of homes that sell for less than $100,000.00. The article points out that a firm in Texas, apparently, has become a national player in the Contract for Deed business.