The Installment Sale Rules allow the Seller to spread the tax liability over an extended period of time. If the Buyer defaults, foreclosure is necessary. If the Buyer defaults, the Seller forecloses, takes the property back, and re-sells it. Next, the Seller has foreclosure costs. At the auction the Seller usually bids his paper and no one overbids.
Seller hires a Realtor to sell the property again.
Then the Seller might not recoup his loss, even if the property is still in great shape and has not been trashed by an unhappy Buyer. If Seller and Buyer are related, some complications occur. Gift followed by Sale Family Limited Partnership. See our Brochures on each of these topics.