Quick, hopefully easy CFD question. In a CFD transaction how would a seller need to get rid of a nonpaying buyer, by eviction or foreclosure? I was thinking about it earlier today and was stumped since the deed is not transferred immediately. Also with the buyer essentially having an interest in the property due to payments and downpayment I wasn’t sure which way it would require. I don’t have a specific deal in mind, just trying to figure this out for my own understanding.
In most states it starts as an eviction process. However, if the buyer/tenant objects and pitches a fit due to the ownership interest issue then you have to go through a foreclosure/quiet title action. This depends a lot on state law, and the specific details of your own contract. This is one of those - “If you get to this spot get a lawyer” scenarios.
My experience - both as an investor and a former real estate agent - most people who default on a land contract do so quietly. Not all, obviously.
Thanks, good info.