How to Report Contracts for a Deed
- 1). Ask the seller to record your contract for deed with your town or county clerk. Contract for deed is also known as a land contract, or installment land contract. Having the sale recorded protects the buyer in the event a lien is recorded against the property after the sale.
- 2). Ask your seller to report your payments to the credit bureaus. If your seller is using a private mortgage servicing company to administer statements and collect payments, the servicer should report the payments. If the seller is collecting the payments directly and is not using a servicer, self-report your payments.
- 3). Contact the three credit bureaus, Equifax, Experian and TransUnion, and report your timely private mortgage payments. Although self-reporting does not affect your credit score, future lenders will take this information into consideration. Save your cancelled mortgage checks as proof of payment. Do not make electronic transfers; only checks are acceptable as proof.
- 4). Retain the checks and a copy of the recorded sale document as proof of the private loan. Produce this documentation, if you attempt to refinance to a traditional loan.
