{"id":7699,"date":"2026-08-22T07:55:06","date_gmt":"2026-08-22T11:55:06","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=7699"},"modified":"2026-08-22T07:55:07","modified_gmt":"2026-08-22T11:55:07","slug":"buying-in-installments-when-the-land-contract-goes-wrong","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/buying-in-installments-when-the-land-contract-goes-wrong\/","title":{"rendered":"Buying in Installments? When the Land Contract Goes Wrong"},"content":{"rendered":"\n
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An Indiana family living in an older Victorian home made the news this summer. The story isn\u2019t pretty. The family has spent nearly seven years trying to get the deed to their home after paying off the last installment on a land contract<\/a>. And now Yolanda, of Frankfort, Indiana, is speaking out about her family\u2019s struggle with the local couple who sold the home to them.<\/p>\n\n\n\n

Thirteen years ago, Yolanda explains, her family paid $60K for the Victorian home on a land contract from sellers Gracie and Jos\u00e9. Yolanda says the family holds the receipt for the final payoff, made in 2020. But the county has no record of a transfer, and the deed is still in the sellers\u2019 names.  <\/p>\n\n\n\n

They see the sellers on social media, promoting other homes for sale around Frankfort. Yolanda\u2019s daughter posted a warning to viewers on one of their advertisements. She was blocked.<\/p>\n\n\n\n

Now the family is hoping media attention will help them press for the long-delayed transfer of their deed.<\/p>\n\n\n\n\n\n\n\n

Installment Contracts Mean Big Business<\/h2>\n\n\n\n

Installment financing in Indiana<\/a> is a well-worn path. Indeed, across the Midwestern states, many properties have changed hands through such agreements. About a third of these agreements involve businesses selling homes and acting as lenders.  <\/p>\n\n\n\n

Installment agreements, such as land<\/em> contracts<\/em> (a.k.a. contracts for deed<\/em>), are workarounds when a mortgage lender\u2019s approval isn\u2019t attainable. Some of these homes are priced too low to meet mortgage lenders\u2019 minimums. The typical home bought on contract costs barely more than $120K.<\/p>\n\n\n\n

The buyer usually gives the seller a down payment\u2014typically 5% or less of the home\u2019s price. The buyer then pays the rest month by month, often owing a large final payment after a few years. The seller plans to transfer the title upon receiving that final payment. The buyer doesn\u2019t get the formal title until the end, but holds equitable title\u2014<\/em>a future ownership interest\u2014during the course of the contract.<\/p>\n\n\n\n

Land contracts offer a relatively easy entry to the market. But here\u2019s the rub. There aren\u2019t many consumer protections if the contract goes wrong. In Indiana, a contract for deed can have any<\/em> interest rate, terms, or fees.<\/p>\n\n\n\n

Indiana courts say<\/a> buyers in default are entitled to foreclosure protections. That means they can\u2019t be evicted without a chance to catch up, and they don\u2019t forfeit all their built-up equity to the seller. But sellers do not always respect the buyers\u2019 rights, and many buyers don\u2019t have the funds for professional representation in a court case.<\/p>\n\n\n\n

Stonewalled in Frankfort<\/h2>\n\n\n\n

And this is how things are for Yolanda\u2019s family\u2014and why, six years past payoff, they\u2019re speaking to the media about the sellers\u2019 refusal to sign over the deed. They\u2019re paying the property taxes, as required, to keep the home from falling into foreclosure. But they don\u2019t feel confident about doing necessary repair work on the old house, given the uncertain title status.<\/p>\n\n\n\n

The main problem seems to be a lack of clear documentation. Throughout the years of the contract, Yolanda\u2019s family made payments through work and with cash.<\/p>\n\n\n\n

Without the deed, Yolanda\u2019s family cannot claim property tax credits, which means they are overpaying their taxes. They don\u2019t get the notices. They call the county themselves to find out what the bill says.<\/p>\n\n\n\n

Yolanda\u2019s family has requested the deed numerous times. One of the sellers, Gracie, reportedly blamed a local lawyer for not getting the work done. That lawyer, who drew up the contract at the beginning, retired. The office closed. A police investigation was opened but later abandoned.<\/p>\n\n\n\n

An investigative report from WIBC in Frankfort, Indiana, found that the deed remains recorded in Clinton County in the name of Gracie\u2019s family. There\u2019s no transfer of ownership to Yolanda\u2019s family on file.<\/p>\n\n\n\n

And now, according to media reports, Gracie isn\u2019t answering calls.<\/p>\n\n\n\n

If lenders served people in need of<\/em><\/strong> small mortgages<\/em><\/strong><\/a>, buyers of low-priced homes would have a wider array of financing options. Fewer people would have to resort to precarious installment agreements.<\/em><\/strong> <\/em><\/strong> <\/em><\/strong><\/p>\n\n\n\n

Renting to Own? Buying on Installments? Know the Risks.<\/h2>\n\n\n\n

After seeing Yolanda\u2019s story in the media, buyers hoping to purchase a home of any kind on an installment plan will want to know how to protect themselves. How can the parties understand and navigate the risks in a seller-financed home sale<\/a>? Legal professionals have shared their comments with the public.<\/p>\n\n\n\n