Questions about "Contract for Deeds"

[Mike Chung]

I have a couple of questions regarding contract for deeds... if anyone can provide me with any input it would be much appreciated!

How does defaulting on a contract for deed effect the buyer’s credit?

What happens if the seller, for whatever reason, doesn’t make their mortgage payments and the mortgage company forecloses? Is the buyer just out of luck?

Also I'm a little confused with regards to what happens if a buyer wants to turn around and sell a home that he "purchased" as a contract for deed: What happens if a person owes 300K on their mortgage. Buyer purchase it for $200K as a contract for deed and decides to sell it shortly after they “buy†it? Who is held liable for the extra $100K?

Hope these aren't too much in the way of newbie questions... but I'm just trying to figure out how all this stuff works. Thx!