7 choices for underwater condo owner
'Contract for deed'
She could sell the condo in a "contract for deed" arrangement.
A contract for deed is a seller-financed transaction. The buyer agrees to make monthly payments for an agreed-upon period -- often, three or five years. At the end of that period, the buyer has to pay off the remainder of the home's price in a lump sum. The plan would be for the buyer to finance this balloon payment with a mortgage.
A contract for deed looks like a rent-to-own arrangement, but it's not, Drewes says. Done properly, it is a genuine sale. Unfortunately for Huss, a contract for deed would probably delay financial pain instead of preventing it, because the sale price would be unlikely to cover the amount owed.
A contract for deed requires the lender's consent, and buyer and seller should be represented by attorneys.