Posted by John Merchant on August 19, 2009 at 17:55:00:
A mtg or DOT is foreclosed, either judicially after lawsuit is filed and won, or non-J w no lawsuit being necessary.
But a RE Contract is “forfeited” a normally simpler non-J action that usually takes less time, expertise and/or money.
I suppose there are 50 different versions of mtg,DOT and REC repo actions as each state has its own laws.
So look up OH REC “contract forfeiture” statute and you’ll see how OH laws say it be done there.
I’m quite familiar with WA State’s REC laws and here after a REC Forfeiture action is filed and the debtor given notice, he can “redeem” up until day before the forfeiture is final by just catching up his delinquency. In fact I had one buyer/debtor do this 3 or 4 times until he finally ran out of family to tap and lost the property.
A WA DOT Foreclosure makes him bring all the delinquency some days before the trustee’s sale or bring all the balance due on his note up until the last minute before the t’es auction day so it’s somewhat more onerous on the debtor and makes him put up more or forever forget it and lose it.
Our REC Forfeiture action is so simple no lawyer or professional trustee is required and maybe other states have an equally simple REC Forftr action.
Of course most any RE practicing lawyer in OH could tell you for a fee.
I’m considering transferring a lease option to a land contract so buyer can get tax credit…(so I can get it) on a home. The buyers all receive ssi or guaranteed payments but I didn’t know if that would affect their getting the credit. Also I wanted to weigh the expense of a foreclosure against this versus an eviction if need be down the road.
There are actually 2 couples in the home (sisters and spouses) so the set up would be unique on the land contract.
Any advice appreciated.
The Vendee hasn’t made a large downpayment, or improvements to the property that would represent greater than a 20% equity position. Of course each party usually has their idea of how much equity or improvements have been made…
Vendee cuts the grass, improves the property by 100K; or some silly stuff like this. I once a Vendee claim that he spent over 25K on the property… “On what…?” A load or two of gravel for the driveway and some mulch for the flower beds… hmmmm, must have been that Tiajuana Gold mulch. You get the picture. Alway open for interpretation.