Posted by John Merchant on February 18, 2005 at 19:40:47:
I’d urge you to talk to somebody well versed in MS legal procedures so you can learn what REC (RE contracts) foreclosure/forfeiture procedures are before you start structuring deals like this.
In some states it’s much quicker, cheaper and simpler to forfeit a REC than it is to foreclose on a deed of trust or mortgage.
FYI, your buyers won’t/can’t be both buyers and tenants, but only one or the other.
If they’re buying, they’ll probably be buyers. If they’re leasing or renting, they’re tenants.
I am thinking of writing a contract for deed that has a non payment clause that if the tenant hasn’t paid in “xx” number of days, the contract converts to a holdover tenant status. I am in Mississippi where there is no language as to specifics to evict/judicial foreclose on a contract for deed. I am not looking for legal advice, just curious if you 2 have seen or heard of something like this working.