Sept. 1, 2005 my fiancé and I sold our house in Lexington, KY on a land contract. As of August 1, 2008 they have defaulted on the contract and said that they are going to file Chapter 7. I drove to Lexington and had him sign a document saying that he has terminated the contract, forfeits all prior payments (including $12k downpayment) and is to surrender the property immediately. Once I was in Lexington, I found out that the step-son is living in the house and has been since the beginning without a lease, but has been paying weekly rental payments. I need to get the house listed and get it sold, how do I go about getting the people living in the house out?

You will have to go through a formal eviction process. I would give the step-son a 10 day vacate notice with a copy of the forfeiture agreement. If he is still not out by then you have to obtain an eviction order from the local housing court.

The step son is going to have to be legally evicted, lease or no lease.

I agree. Evict. And do it quick!

Was the sale a contract for deed, or did you actually transfer the deed over to them and you're just carrying the note? Did you have an attorney involved? Now would be an excellent time to contact him or her.