Posted on: 15th Apr, 2004 01:17 am
Forfeiture is a kind of foreclosure carried out in case of land contracts mostly. A land contract is a real estate contract in which the buyer agrees to pay the balance of the purchase price to the seller and in return the latter offers him a deed when the contract is paid in full. The seller retains title to the property till the contract is fully repaid.
There are various reasons behind initiating forfeiture. The seller often starts this legal process when the buyer does not fulfill the obligations of the contract or if the latter stops making payments of the land contracts. For instance, the buyer may fail to keep in good repair condition. Forfeiture may also be initiated if the buyer intends to sell off the property to a third party without an approval from the lender.
Prior to the action of the forfeiture, the seller sends a 30 day written notice to the buyer. This notice must meet the following requirements.
In forfeiture, the seller files an affidavit with the county recorder in order to reflect the change in ownership. Upon successful completion of the legal procedure, the buyer becomes a tenant at will and he may have to leave the property within a few days as stated in the contract. Usually the seller starts off the eviction action by issuing a 3 day notice to the buyer to quit the property.
If a buyer thinks that the seller has incorrectly forfeited the land contract, he can file in response to the eviction petition which deals with the issue of ownership of the property. If the buyer can prove that there is no default in the land contract, then he can stop the forfeiture and regain his ownership rights over the property.
In most cases, where the forfeiture is due to non-payment of monthly installments, the buyer can escape the legal action by paying a substantial amount of the purchase price to the seller. But this is not always guaranteed.
There are various reasons behind initiating forfeiture. The seller often starts this legal process when the buyer does not fulfill the obligations of the contract or if the latter stops making payments of the land contracts. For instance, the buyer may fail to keep in good repair condition. Forfeiture may also be initiated if the buyer intends to sell off the property to a third party without an approval from the lender.
Prior to the action of the forfeiture, the seller sends a 30 day written notice to the buyer. This notice must meet the following requirements.
- The notice must be in writing.
- It should state the details of the contract and describe the features of the property.
- The notice must state the terms which the buyer could not fulfill.
- The notice affirms that the buyer has to meet his obligations or else the contract will be forfeited.
- The legal notice should state the amount of attorney fees claimed by the seller.
In forfeiture, the seller files an affidavit with the county recorder in order to reflect the change in ownership. Upon successful completion of the legal procedure, the buyer becomes a tenant at will and he may have to leave the property within a few days as stated in the contract. Usually the seller starts off the eviction action by issuing a 3 day notice to the buyer to quit the property.
If a buyer thinks that the seller has incorrectly forfeited the land contract, he can file in response to the eviction petition which deals with the issue of ownership of the property. If the buyer can prove that there is no default in the land contract, then he can stop the forfeiture and regain his ownership rights over the property.
In most cases, where the forfeiture is due to non-payment of monthly installments, the buyer can escape the legal action by paying a substantial amount of the purchase price to the seller. But this is not always guaranteed.
Hi Guest,
If you have not breached your contract, then the seller won't be able to take any legal actions. Even if she takes legal action, she will lose the case.
Thanks
If you have not breached your contract, then the seller won't be able to take any legal actions. Even if she takes legal action, she will lose the case.
Thanks
My husband and I sold a house to a couple 3 years ago on a land contract. They paid $5,000 down and agreed to make a monthly payment. They also agreed to assumed the property taxes and insurance responsibilities. In the contract it stipulates that they will keep the maintenance up on the home and pay the refuge and municipal fees. We just found out that they have vacated the house and have hired an realator to sell the house. Also they are over three years behind on their refuge (trash) bill. The house is in horrible condition. We live out of state and have just seen it. What are our legal options?
Hi Dee!
Welcome to forums!
Your query has been replied to in the given page:
http://www.mortgagefit.com/Mortgage-Basics/What-are-our-options-in-WV.html
Please take a look at it. I hope it will help you.
Sussane
Welcome to forums!
Your query has been replied to in the given page:
http://www.mortgagefit.com/Mortgage-Basics/What-are-our-options-in-WV.html
Please take a look at it. I hope it will help you.
Sussane
we purchased a home almost a year ago through land contract. written up by a lawyer and filed/recorded. we have kept up the property and have never missed a payment. the owner just placed a for sale sign in the front yard a few days ago. it is listed with a local realtor. can he legally do this? we find nothing in our contract which addresses this situation. we are in iowa.
Welcome d brass,
If you are paying off the payments on time every month, then the owner cannot place a "for sale" sign in front of the house. You should have a word with the owner as well as consult an attorney in order to sort out the matter.
If you are paying off the payments on time every month, then the owner cannot place a "for sale" sign in front of the house. You should have a word with the owner as well as consult an attorney in order to sort out the matter.
me the seller can i evict the buyers out of the house there back on bank payments 3 months do they have the right to catch it up or can i just put them out
Hi kay adkins,
If you have such an agreement with the buyer that they will be ousted from the property if they can't pay off the debts, then you can send them an eviction notice.
If you have such an agreement with the buyer that they will be ousted from the property if they can't pay off the debts, then you can send them an eviction notice.
Our family has been in a land contract for the past 6 years. We were due to pay balance off in Sept. We got served papers by the county sheriff that the house was going into fore closer, and a court date. The owner had not made the payments to the bank for about a year. We had to show all receipts of us making the payment. So we did. We were had been paying the monthly payments required by the bank, and 200.00 extra to lower the balance that would be due, at the end of the contract. We have found that only the min. payments had been made, and then those stopped. During that 6 years, we have put about 30 grand into upgrades and renovations, that it seems we will now be out as well. We have tryed to work with the bank, but at this point nothing is being done, so each day its like waiting for the ax to drop. We have started looking for something else.
The banks dont want to work with people, we have been to many sheriff sales, each time leaving with nothing, because the banks are buying all there houses back. They have a pretty good racket going for them selves. The get get insurance on the note, then when its lost by the owner, they get paid the insurance money, they buy back the house, and sell it again.
The banks dont want to work with people, we have been to many sheriff sales, each time leaving with nothing, because the banks are buying all there houses back. They have a pretty good racket going for them selves. The get get insurance on the note, then when its lost by the owner, they get paid the insurance money, they buy back the house, and sell it again.
Hi pattim!
Welcome to forums!
I can understand your frustration!! If you want to buy a property, then rather than going to the foreclosure auction, you can contact real estate brokers and take their help in finding a property of your dreams. That will be a better option in my opinion.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I can understand your frustration!! If you want to buy a property, then rather than going to the foreclosure auction, you can contact real estate brokers and take their help in finding a property of your dreams. That will be a better option in my opinion.
Feel free to ask if you've further queries.
Sussane
My wife and I have an older home that we rent out in wash state. 7 monthes ago we decided to lease to own and had a purchase contract written up. We make just enough on the mo installements to make the mortgage payments. To our dismay the buyer decided not to pay and won't answer the phone or door. What do we do next?
Welcome mkbrads,
As you had signed an agreement with the buyer, you must have mentioned what actions you can take in case of non-payment of the dues. You can contact an attorney and take those legal actions against the buyer.
As you had signed an agreement with the buyer, you must have mentioned what actions you can take in case of non-payment of the dues. You can contact an attorney and take those legal actions against the buyer.
We entered into a land contract for an acre for 900.00. when we sold it ,we thought that it was a piece of our total parcel. after further research, it turns out it was not. it doesnt even exist as it was a mistake on the very old tax maps. the written agreement between both parties was signed by me and my wife and the other was signed by the gentleman and his daughter signed for his wife9legal?) are we still liable for breach of contract due to this error on the property tax map from many years ago?
Hi jack,
Daughter signing the deed on behalf of the wife won't be considered as legal unless the daughter has a POA on behalf of the mother. If there is a breach of contract, then you will be liable for it.
Thanks
Daughter signing the deed on behalf of the wife won't be considered as legal unless the daughter has a POA on behalf of the mother. If there is a breach of contract, then you will be liable for it.
Thanks
We purshased a piece of land in Tennessee the value of which has declined to below 50% of it purchase price. My mortgage is 30% more than the values of the property.
We like to modify the loan or increase the term to reduce the payment. I have never missed a payment, but they are difficult to maintain.
Any suggestions anyone might have is greatly appreciated.
Thanks,
Jay
We like to modify the loan or increase the term to reduce the payment. I have never missed a payment, but they are difficult to maintain.
Any suggestions anyone might have is greatly appreciated.
Thanks,
Jay
hi roxy!
welcome to forums!
as you don't have equity in your property, it may not be possible for you to refinance the loan for modifying the loan or increasing the term to reduce the payment. nevertheless, you should contact your lender and apply for home affordable refinance program (harp). to know all about harp, check out the given page: http://www.mortgagefit.com/blog/harp-newguidelines/ .
feel free to ask if you've further queries.
sussane
welcome to forums!
as you don't have equity in your property, it may not be possible for you to refinance the loan for modifying the loan or increasing the term to reduce the payment. nevertheless, you should contact your lender and apply for home affordable refinance program (harp). to know all about harp, check out the given page: http://www.mortgagefit.com/blog/harp-newguidelines/ .
feel free to ask if you've further queries.
sussane