Investor · Randallstown, MD · Member since 2010 · 185 posts · 57 votes
Hi BP Family,
So, I'm in a bit of a sticky situation. I sold a property on Land Contract (in Michigan), and the purchaser defaulted on payments one month after signing the LC. It's been a long time (so long it's too embarrassing to say), and now I am going through the forfeiture of LC proceedings. I also have to pay back taxes for the last 5 years before the county gets the house. I have been in touch with the current tenants, who the delinquent purchaser has leased to. They are willing to redirect their payments to me, since they know I am regaining ownership of the property. It can take up to 4 months for this to happen. My question is can I redirect their rental payments to me since he has completely disregarded his responsibilities, and I am regaining ownership? What's the risk for me and the tenants? I know this is a legal question, but any input is appreciated
Contractor · Columbus ohio · Member since 2015 · 90 posts · 42 votes
10y
I've been in this situation before. Before you can collect rent, you need to retake possession and rights to the house. Tell the tenants to put payments in escrow and if current landlord tris to evict, to go to hearing and tell judge they have payments in escrow til ownership is figured out. Also, the county takes house after 3 years, so I don't see how you can be 5 years behind. I'm in michigan and have been through all of this. If I can be of any assisstance, get in contact with me.
Investor · Randallstown, MD · Member since 2010 · 185 posts · 57 votes
10y
Thanks so much for your response @Kevin Holmes. It's 5 years behind because the purchaser kept getting extensions. Can you please inbox me your info? I'd love to call you. THANK YOU!!!!
Real Estate Agent · Grand Rapids, MI · Member since 2014 · 493 posts · 200 votes
10y
Yep...that's it. But, make sure you're tenants are aware that if an eviction is pursued and ends up in court, it will ruin their tenant history and show and eviction--even if they win in the end.
Investor · Fenton, MI · Member since 2015 · 142 posts · 46 votes
10y
So @Account Closed, why would a tenant be motivated to assist if the possibility of an eviction rests in the balance? what is the likelyhoood that it would make it to court?