Jake Burhans explains how sellers protect themselves in seller-financed deals. If the buyer defaults, a performance deed lets the seller instantly reclaim the property through the county recorder, keeping all down payments and improvements made.
So the first thing is, how are you protected, right? What if we go bankrupt, right? This is a common question. What if for whatever reason we go bankrupt, we get swept off the face of the earth, whatever reason, and we stop paying? So what I like to tell people is that's honestly probably your best case scenario. And the reason why is because we put something in our— in the deed called a performance deed, or it's called a deed in lieu of foreclosure. So if for whatever reason we stop making payments, you could take that pre-signed deed right down to the county You could say Jake and his company, they defaulted on their payments, and the property would instantly revert back to your name, right? And you would get any improvements we've made, the down payment we've made to you, and any payments we've made along the way. You would get to keep, and then you'd get the property back, and you could honestly just go list it or rent it.
