Installment Contract
An agreement between the buyer and the seller, which allows the buyer to purchase the property on installment. The seller, in fact, becomes the lender for the buyer's purchase. However, the property remains in the seller's name until the established price is fully paid. With an installment contract, the buyer is allowed to move in; the buyer pays monthly payments. Most installment contracts are essentially balloon in structure, giving the buyer a limited amount of time to eventually procure mortgage refinancing. For a more detailed discussion, see the "Installment Contract Purchases" article in the "Creative Financing" section.
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