Land Contract Evictions

4 Replies

I sold a property on land contract in St Louis, MO. After a couple months the buyer stopped paying. Do I go through a regular Eviction to regain the property, or would I have to go through a Foreclosure? Would appreciate and input or suggestions (before I go through an attorney). Thanks

This was an interesting question to me, so I googled it. This is what I found:

"What Happens if the Buyer Fails to Make the Land Contract Payments Due?

If the buyer defaults on the land contract, or fails to make the monthly payments to the seller as required, the seller can file a court action called land contract forfeiture. Forfeiture will result in the buyer “forfeiting,” or giving up, all money paid to the seller for the property pursuant to the land contract and the equitable title of the buyer will be extinguished. In other words, if the buyer fails to pay, the seller keeps all money received, plus the seller keeps the real estate.

The seller takes a risk selling by land contract because the seller does not receive the full purchase price at the time of sale, but a forfeiture right protects the seller from a buyer who fails to pay allowing the seller keep payments and a usually large down payment made by the buyer while retaining the property to offer for sale to someone else."

Well of coarse you get the house back but what under what legal ramifications. I’ve read in these cases with seller financing  it falls under a foreclosure not a standard eviction and becomes a tedious process . Whatever the process I’d start it immediately do not doddle about filing paperwork on this idiot . Get your property back 

What Denny said. It's a forfeiture action. And it will follow your state statute. 

However, the forfeiture just cancels the buyer's ownership interest, it does not remove them from the property.  After the forfeiture you then have to file a separate eviction action to get them out. 

Thanks for the info, had been very helpful.

Now if I set it up as a Rent to Own (in the future) instead of a seller financing/land contract, would I be able to avoid going through the whole foreclosure procedure as mentioned above, and be able to file a regular Eviction?