How to Start Foreclosure on a Land Contract Sale
You need to take legal action to recover your property if someone is not paying you on a land contract. If the buyer is in default of the land contract agreement, you can start foreclosure proceedings against them. When you file for a foreclosure on a land contract, the buyer must pay the full amount owed on the property to keep possession. The laws pertaining to land contract foreclosures vary from state to state. Follow the procedures of your jurisdiction carefully.
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Instructions
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Fill out a foreclosure notice form. Include the names of the parties and terms of the contract. State the last date that a payment was made. Your state law mandates how many days you have to wait before starting a foreclosure for default of payments. For example, some states require a default period of 45 days before you can begin foreclosure proceedings.
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Serve the notice of foreclosure on the buyer. You can serve the foreclosure notice personally or deliver it by first class mail to the buyer's last known address. You can also serve notice by publication in a newspaper if you can't locate the buyer.
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Wait for the buyer to respond to the notice of foreclosure. The buyer can cure the default by making payment within a certain time limit, as required by state law.
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File a Foreclosure of Land Contract bill of complaint in the circuit court in the county where the property is located if the buyer does not pay you. Pay the filing fees.
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Serve the complaint along with a summons to appear in court on the defendant. The buyer must receive service of process in accordance with your state's rules of civil procedure.
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Tips & Warnings
State laws regarding foreclosure proceeding must be followed exactly. Review the procedures in your jurisdiction.
