A Michigan Land Contract Buyer agrees to pay $400 per month - for Interest, Principal & Taxes ($400 x 6 months = $2,400)
After 6 months, Buyer has only paid $1,150.00. Payments are late & incur a Late Fee as well as Interest on Interest Due, Taxes are past due and Buyer has not purchased required Home Insurance (Seller has kept home insured). Buyer also owes Seller for 2 Natural Gas bills. When Buyer makes a payment, what is the priority of payment, what gets paid first, then second, then third, etc.
Natural Gas Bills
Taxes
Home Insurance
Late Fees
Interest on Outstanding Interest Balance
Interest
Principal

Hello s:

In my view, they owe ONE amount, which is the total of your list. I'm sure you don't allocate the bills they owe. I'll bet you pay them when they become due.

My question for you, is why do you let them do this? Certainly, the land contract favors YOU, if it was written properly, and you can take back the property very simply, and sell it again. It's obvious to ME that these people will NEVER get caught up, and the longer you let them stay, the BEHINDER they'll get.

So, as long as they owe you one big bill, that's what you eventually sue them for when this is all done.

excon

BEHINDER? Exie I thought I was the only person who used that term!

As for the OP's question there is no priority to what the person owes as they owe everything.

When you do go to court you will need to itemize what they owe though.

Yes, first unless the contract allows for late payments they are in default. I guess I question why the seller has not declared them in default and concelled the contract