anyone familiar with owner financing

[Richard Tyler]

Hi, I have a vacant lot that I'm considering selling under owner financing, where the buyer puts down 30% and then pays me monthly for the next 5 years.  Does anyone know how this will be reported to the IRS?  Will it be reported as sold, and if so, sold for how much?  Or will this be reported as sold 5 years from now after the last monthly installment is paid off?

What if the buyer fails to pay the monthly payment later on,  and I foreclose on the property, will I have to report to the IRS that the property is owned by me again?  And if I choose not to foreclose, what happens, and who owns the property at that time if I don't foreclose ?  Thanks.