What are the Alternatives?

The alternatives are rent, short sale or foreclosure.  Here's how it looks from a Seller's or Buyer's perspective: 

For the Seller

The Seller's primary alternative is to lease the property.  A landlord must deal with the 3 M's - Maintenance, Management and Move-outs.  With a Contract for Deed, the Buyer is responsible for all maintenance - no more 3AM calls about the toilet running.  There is no need to pay a management company to coordinate payments, look for a new tenant every year and collect rent.  A Contract for Deed Buyer has an ownership mentality and a down payment so he is less likely to move out and leave you hanging.

For the Buyer

If the Buyer can't find a new loan, he can rent or rent with an option to buy.  But, renters lose many valuable benefits associated with ownership.  A renter gets no tax deduction for his monthly payment.  That tax deduction can return a third of the monthly payment in the form of tax savings.  A renter gets none of the property's future increase in value.  A renter does not get the benefit of amortization - that part of every monthly payment that reduces the principal  loan balance and increases equity in the property.  A renter is subject to rent-increases at every renewal whereas a buyer will usually have a fixed payment.  And finally, a renter has no assurance he will be able to stay.  The owner might decide to sell rather than renew the lease.