Land contract/late payments/ forced place insurance/code violations

Member since 2025 · 28 posts · 15 votes

Hi BP Friends: I have a contract for deed or land contract on a property in Canton, Ohio. The tenant is very late in his contract payments only paid 5 payments in 2025 and no payments yet is 2026. He has been very sporadic with payments since 2014 and is effectively one year late on payments.

He has taxes coming due in March,2026. He failed to pay on his property insurance so I had to purchase forced placed insurance on the property.

He has multiple code violations that need to be remedied by March 10, 2026. He said he would get me pictures of the remedied violations which I still have not received.

My understanding is that if the contract is over 5 years old in Ohio is that I have to go through the forclosure process.

Any suggestions on how I should proceed with this individual?

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Chad U.

Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes

7mo

Quote from @Gary Campanaro:

He has taxes coming due in March,2026. He failed to pay on his property insurance so I had to purchase forced placed insurance on the property.

He has multiple code violations that need to be remedied by March 10, 2026. He said he would get me pictures of the remedied violations which I still have not received.

My understanding is that if the contract is over 5 years old in Ohio is that I have to go through the forclosure process.

Any suggestions on how I should proceed with this individual?

Welcome to the wild world of Land Contracts. Hire an attorney and start the foreclosure process immediately. You'd be surprised how some borrowers react once they start getting legal notices sent by registered mail to them.

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Chad U.
Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
7mo
Quote from @Gary Campanaro:

Hi BP Friends: I have a contract for deed or land contract on a property in Canton, Ohio. The tenant is very late in his contract payments only paid 5 payments in 2025 and no payments yet is 2026. He has been very sporadic with payments since 2014 and is effectively one year late on payments.
He has taxes coming due in March,2026. He failed to pay on his property insurance so I had to purchase forced placed insurance on the property.
He has multiple code violations that need to be remedied by March 10, 2026. He said he would get me pictures of the remedied violations which I still have not received.
My understanding is that if the contract is over 5 years old in Ohio is that I have to go through the forclosure process.

Any suggestions on how I should proceed with this individual?

Welcome to the wild world of Land Contracts. Hire an attorney and start the foreclosure process immediately. You'd be surprised how some borrowers react once they start getting legal notices sent by registered mail to them.
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Gary Campanaro
OP
Member since 2025 · 28 posts · 15 votes
7mo
Hi Chad, thank you for the above advise. I know the legal way is the way to proceed now. Thank you for the confirmation.
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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
7mo
Quote from @Gary Campanaro:

Hi BP Friends: I have a contract for deed or land contract on a property in Canton, Ohio. The tenant is very late in his contract payments only paid 5 payments in 2025 and no payments yet is 2026. He has been very sporadic with payments since 2014 and is effectively one year late on payments.
He has taxes coming due in March,2026. He failed to pay on his property insurance so I had to purchase forced placed insurance on the property.
He has multiple code violations that need to be remedied by March 10, 2026. He said he would get me pictures of the remedied violations which I still have not received.
My understanding is that if the contract is over 5 years old in Ohio is that I have to go through the forclosure process.

Any suggestions on how I should proceed with this individual?

Hey Gary, sounds like a really frustrating situation and unfortunately what you’re describing is pretty common with long-term contract-for-deed arrangements in Ohio. Since the contract is over five years old, yes, Ohio law generally treats these more like a mortgage, so you likely have to go through the formal foreclosure process to regain clear title, which can be slow and costly but is usually the safest legal route. In the meantime, document everything—missed payments, code violations, insurance costs, and communications—because that record will be important if you go to court. You could also send a formal notice demanding payment and compliance with the contract terms to give them a last chance to cure before initiating foreclosure, which sometimes prompts action without going to court. Considering the taxes, insurance, and code issues piling up, getting a local real estate attorney involved who’s experienced with contract-for-deed foreclosures in Ohio is really the best next step, because they can guide you on the proper notices and timeline to protect yourself and the property. Happy to connect and answer any questions you have!
[email protected]614-300-7535
Jimmy Lieu, Red 1 Realty4.9120 Reviews
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Gary Campanaro
OP
Member since 2025 · 28 posts · 15 votes
7mo
Hi Jimmy, Thank you for above advise on the next steps to take! I appreciate your help. I will get the process rolling.
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
7mo
Quote from @Gary Campanaro:

Hi BP Friends: I have a contract for deed or land contract on a property in Canton, Ohio. The tenant is very late in his contract payments only paid 5 payments in 2025 and no payments yet is 2026. He has been very sporadic with payments since 2014 and is effectively one year late on payments.
He has taxes coming due in March,2026. He failed to pay on his property insurance so I had to purchase forced placed insurance on the property.
He has multiple code violations that need to be remedied by March 10, 2026. He said he would get me pictures of the remedied violations which I still have not received.
My understanding is that if the contract is over 5 years old in Ohio is that I have to go through the forclosure process.

Any suggestions on how I should proceed with this individual?

You are correct you are going to have to foreclose on this borrower, so you will need to get an attorney to send a demand letter and start the foreclosure process. Understand in ohio that depending on outcome some legal costs are not recoverable.
7e investments53 Reviews
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Gary Campanaro
OP
Member since 2025 · 28 posts · 15 votes
7mo
Thank You Chris, I appreciate the advise on the demand letter and that the legal costs may not be recoverable.
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