The Consumer Financial Protection Bureau (CFPB) on Tuesday released an advisory opinion stating that contracts for deed are under federal home lending rules and should provide consumer protections.

In these contracts – also known as “land contracts” or “bond for deed” –the seller retains the legal title to a home until the borrower completes all the payments, leading to some “traps,” according to the CFPB.

Home prices are usually inflated, inspections are not made, and loans have high interest rates and balloon payments. Carrying the responsibility of homeownership, buyers end up in unlivable homes details ⇒

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