Buying A Home On Contract May 2026

As year six approached, panic set in. What if the house didn’t appraise for enough? What if interest rates spiked? What if Arthur passed away before the deed was transferred?

That’s how they ended up on the porch of Arthur Vance, a retired clockmaker who had owned the Maple Street house for forty years. The Handshake and the Paperwork buying a home on contract

Arthur didn’t want a bank involved any more than they did. "Banks are slow, and they don't care if the roof is slate or shingle," Arthur told them over lukewarm coffee. "I want the income, and you want the roof. Let’s cut out the middleman." As year six approached, panic set in

They had bypassed the system, but they had walked a tightrope to do it. As they watched Arthur walk down the driveway for the last time, Elias looked at the porch he’d rebuilt. He knew every nail in those boards—and now, he finally owned them. What if Arthur passed away before the deed was transferred

Arthur, usually a kindly old man, called them three times a day. Under a standard mortgage, a bank has to go through a lengthy, months-long foreclosure process if you miss payments. But under their specific contract—which had a "forfeiture clause"—if they defaulted, Arthur could technically cancel the contract, keep their down payment, keep all the monthly installments they’d paid, and keep the house.

The first two years were a whirlwind of sawdust and paint. Because it was a contract sale, there was no bank appraiser forcing them to fix the peeling lead paint or the cracked driveway before closing. Elias spent his weekends restoring the original mahogany wainscoting. Sarah planted a sprawling perennial garden.