Posted by JohnBoy on June 21, 2001 at 20:42:11:
Yes, I’m in the Chicago area. No, I don’t own any property in MI.
Where in MI and what did you have in mind? If I’m not interested I may know of a couple people that might be.
I have some friends and relatives that spend a lot of time in New Buffalo and Bridgeman(?).
Land Contracts - Posted by Finley (AR)
Posted by Finley (AR) on June 20, 2001 at 09:12:12:
I have a specific question about Land contracts.
I beleive I understand that the buyer does not recieve the deed until the mortage is satified. My question is if the buyer defaults on the mortage will a foreclosure be necessary or will their removal be more akin an eviction?
Thanks in advance.
Re: Land Contracts - Posted by JohnBoy
Posted by JohnBoy on June 20, 2001 at 09:44:41:
First of all, there is NO mortgage. It’s just a contract. As far as whether or not you will need to foreclose vs. evict in the event of the buyer defaulting, it depends on your state laws and how the contract for deed is structured.
Example:
In my state, IL., if the buyer has 20% or more in equity AND the contract for deed is for 5 years or longer, then we must foreclose if they default. If the buyer has less than 20% in equity AND the contract for deed is less than 5 years, then we can evict them as a tenant. Of course you must still serve proper notice and if the buyer fails to cure the default, then we record a quit claim deed that we had the buyer sign over to us that is held in escrow. After we record the quit claim deed the buyer loses all their interest in the property as an owner with equitable title and then we file for eviction.
Every state has different laws pertaining to contract for deeds, so you need to check and see what the statue reads in your state.
Re: Land Contracts - Posted by Dean C.
Posted by Dean C. on June 21, 2001 at 20:33:05:
JohnBoy, do you by chance live in Chicago? If so, do you own any properties in MI? Would you like to?