Land Contract Default - Posted by Mitch Painter

Posted by Mitch Painter on October 22, 2003 at 10:20:32:

The seller told me the property was worth alot more then it was, he also told me it didn’t need that much work. Of course i have no hard proof for this though. I should have done more research myself, but failed too… I feel like this might fall into line with all the investor’s selling unsuspecting buyers properties at way higher prices then they’re worth…
I’ve worked out a deal with the seller but he’s being really hard on me… guess i’ll just lose what i have to and take it as a lesson learned, but i wish i could just be done with it and move on…
Mitch

Land Contract Default - Posted by Mitch Painter

Posted by Mitch Painter on October 20, 2003 at 19:12:33:

I bought a property on a land contract and have since went into default. I have dumped over 19,000 into the property to later realize it isn’t worth close to what i owe. Can i back out of the land contract without the seller coming after my assets? The land contract was standard and the state of the property is ohio. Can i just let the seller have the property back and be done with it?

Sincerely,

Mitch Painter

Re: Land Contract Default - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on October 21, 2003 at 19:58:48:

You may be able to do what Bill says, and maybe not.

Ohio requires a foreclosure if you have had the property for five years, or you have a 20% equity. The equity can not be readily determined, without some study or perhaps an apprasil.

Ohio also requires the land contract to be recorded by the purchaser. Was that done?

You may be able to just give the deal back to the seller, or perhaps not. More information is needed to make a determination.

What you are saying is that you made a mistake and now you can not keep up the payments. You want the seller to just fix everything for you by forgetting the deal. Somehow this seems a bit unfair to me.

Re: Land Contract Default - Posted by William Bronchick

Posted by William Bronchick on October 20, 2003 at 21:42:45:

I would negotiate a settlement with the owner, then get him to sign a general release as part of the settlement.

You can find a general release form on my website: