Some people who can't qualify for a mortgage, turn to a thinly regulated arrangement called contract for deed. Similar to renting to own, it rarely results in a buyer taking possession of the home.

The contract for deed option is marketed as a way for people who can’t get a conventional mortgage to realize the dream of owning a home. But more often than not, buyers do not end up as homeowners.

Marisela Orozco (foreground) is letting her sister, Marissa, live in the house she thought she would own after making almost four years of payments. Marissa lives there today rent free, but pays the ...