Posted by Russ Sims on September 05, 2003 at 13:29:39:
It’s different from state to state…find your specific state code on this subject. I just did what we in Washington call a “forfeiture” for one of our CFD deadbeats.It’s a process that involves forfeiting the rights of the buyer. There’s no court if the buyer doesn’t contest and it takes 3 to 4 months.
Russ
Eviction vs. Foreclosure on CFD - Posted by Rhonda
Posted by Rhonda on September 04, 2003 at 22:26:19:
I’m hesitantly considering selling a SFH in Indiana on land contract.
One area of concern is if my buyer defaults. What factors determine whether a simple EVICTION vs. a FORECLOSURE is necessary/appropriate to remove the “squatter”?
For instance, I’ve heard that if a buyer has less than 20% equity in the property, he can be EVICTED for non-payment. On the otherhand, if the buyer’s equity is greater than 20%…you’re probably looking at a FORECLOSURE scenario. I don’t really know if this simple distinction is completely true/valid for Indiana…or any other state for that matter.
Thanks in advance for your comments. Ideally, if anyone knows of specific Indiana Code that speaks to this issue, that would also be greatly appreciated?
Thanks,
Rhonda
What you’ve heard is correct… - Posted by JT-IN
Posted by JT-IN on September 05, 2003 at 15:27:37:
What you’ve heard is correct… In the state of IND. Less than 20% equity, you evict. I can’t give you the statute, however, but if you want it in black and white… why not call your Atty and have him/her put it in writing. This is what my Atty )who is a RE Atty), told me…
What I used to do… back when I did Land Contracts, (haven’t done one in the past 3+ yrs now), is to have the Buyer/Vendee sign a Quit Claim Deed, disclaiming any interest in the property, at the very same time that they signed the LC.
Oh sure, I had some folks say I won’t do the… I said, OK fine… let me get on to finding the buyer for the proeprty then. In other words, NO Quit Claim Deed, NO Deal… It would bring them all around in a hurry. Oh, I even had several of them run it by their Atty, and the Attys seemed to say that if that is how the guy wants to do his business, that is his choice. If you want the house… you sign the Deed.
Now I have a few folks say that might not be legal… etc., having the deed signed in advance. My view on this has always been that I would rather have it and not need it, than need it and not have it… I have never had to file one of the Deeds, to extinguish a Buyers rights to the property, but if I had to I would have used it…
One more point… Why do a LC when you could possibly protect yourself even more with a L/O…? This is just my product of choice when in a situation where I need to do owner financing. Each to his/her own, I suppose… but with the negative tax implications of a LC, to one who turns over lots of property, this makes the choice even easier to make. A L/O eliminates that issue all together.
Just the way that I view things…
JT-IN
Re: Eviction vs. Foreclosure on CFD - Posted by Randy
Posted by Randy on September 05, 2003 at 10:57:17:
If you?re selling on a ?land Contract? or Contract For Deed you must Foreclose not simply evict. A land contract / CFD gives the buyer an equitable interest in the property therefore must be removed by a legal preceding not just a notice to quit and vacate.