View Full Version : Need to know what to do land contract has become foreclosure owner defaulted taxes
shellyar2011
Jan 25, 2013, 05:20 PM
I am buying a house on a land contract I have completely redone the inside and live in it with my family. Just received a letter from the county that the taxes have not been paid in years and it will be foreclosed on in a month. I have tried to reach the owner but he will not answer me. It is in our contract that he must have all taxes up to date and the deed is free and clear. I have a great deal of money and work into the house. What can I do?
AK lawyer
Jan 25, 2013, 05:37 PM
Look at the contract to find ouit the exact procedure, but I would pay the taxes and take it out of the payments due the person from whom you are buying.
shellyar2011
Jan 25, 2013, 05:56 PM
Look at the contract to find ouit the exact procedure, but I would pay the taxes and take it out of the payments due the person from whom you are buying.
I can't afford to pay the taxes they r $3000 past due and they must be paid in full by the 28th of February and I would still have to pay the owner the monthly bill he will not speak to me at all and avoiding my calls.
joypulv
Jan 25, 2013, 06:11 PM
Go talk to the tax office people.
AK lawyer has advised you for free - withhold payments to the seller! Why would you continue to pay him, when he is causing this foreclosure? If he won't speak to you, how do you know he is even alive, and somebody else is cashing your checks? STOP paying him! Go talk to the tax office!
If you can please copy here the exact wording of your contract where it says he continues to pay taxes past when you signed the contract.
shellyar2011
Jan 25, 2013, 06:35 PM
Go talk to the tax office people.
AK lawyer has advised you for free - withhold payments to the seller! Why would you continue to pay him, when he is causing this foreclosure? If he won't speak to you, how do you know he is even alive, and somebody else is cashing your checks? STOP paying him! Go talk to the tax office!
If you can please copy here the exact wording of your contract where it says he continues to pay taxes past when you signed the contract.
I had just made a payment a few days before I received the foreclosure and I know he is alive he was here to pick up the rest of his belongings last weekend. I will not make another payment to him but it does state in the contract if I miss a payment I breach the contract forfeit the house and all payments I have made
The contract states:
PROPERTY TAX ASSESSMENTS
5. for the duration of this agreement,the seller be will responsible for all taxes, and assessments levied against the premises and may collect from the purchaser by giving 30 days notice in writing. The taxes will be paid up to date during the duration of this agreement.
I went into the land contract on the property 4 months ago the taxes he owes r 3 years past due
joypulv
Jan 25, 2013, 06:49 PM
I'm really sorry that you didn't do a title and tax search before you bought. It would have been easy. Now you have to sue him. Hire a lawyer and put any future payments in the lawyer's escrow account. You have basically given him a gift of all the renovations.
shellyar2011
Jan 25, 2013, 06:58 PM
I'm really sorry that you didn't do a title and tax search before you bought. It would have been easy. Now you have to sue him. Hire a lawyer and put any future payments in the lawyer's escrow account. You have basically given him a gift of all the renovations.
I am sorry I didn't as well I thought since the contract stated it was all paid and up to date that I could believe him but lesson learned when money is concerned I shall never trust another human again.
I bought it as a shell just cement floors and cement walls I will be removing all the renovations I have done in the house and selling the materials I have in it to get back a bit of my money and he will have the same house he fraudulently tried to sell me
Fr_Chuck
Jan 25, 2013, 08:05 PM
You always do a title search on any purchase, and a home inspection.
Also as a buyer, you want to always file the contract at the courthouse to stop future loans being made on property ( normally)
A home does not have to be free and clear to be sold on contract, seldom are the ones I sell clear, I merely have to keep payments up.
But go see the tax office ASAP, often if you pay one year it may stop the lien.
Also it is not a foreclosure, unless the tax liens were already sold.
They put a lien on the property, and then sell the lien to someone.
AK lawyer
Jan 25, 2013, 08:25 PM
...
the contract states:
...the seller ... may collect from the purchaser by giving 30 days notice in writing. ...
I'm not sure what that means. It sort of suggests that (maybe) the seller pays the taxes but then the purchaser (OP) is supposed to reimburse him.
Another thought: usually if you pay the first year of several years of delinquent taxes, you can forestall tax foreclosure until you can get the money together for the later years.
shellyar2011
Jan 25, 2013, 09:38 PM
You always do a title search on any purchase, and a home inspection.
Also as a buyer, you want to always file the contract at the courthouse to stop future loans being made on property ( normally)
A home does not have to be free and clear to be sold on contract, seldom are the ones I sell clear, I merely have to keep payments up.
But go see the tax office ASAP, often if you pay one year it may stop the lien.
also it is not a foreclosure, unless the tax liens were already sold.
They put a lien on the property, and then sell the lien to someone.
I didn't realize I needed to do a title search when the contract clearly states it is all paid up and a clear title. There was no need for a inspection when I bought it it was just a gutted shell with cement floors and cement walls.
I did not file it at the courthouse we both agreed upon the terms of the contact and had it all notarized through his bank.
He stated clearly in the contract:
For the duration of this agreement the seller will be responsible for all taxes, assessments levied against the premises and may collect the same from the purchaser by giving 30 days notice in writing. The taxes will be paid up to date during the duration of this agreement.
I would say 3 years behind in taxes is much more than 30 days and the contract was filled out only 4 months ago. He didn't keep the tax payments up at all.
I will speak to the tax office but paying thousands more for the house is out of the question.
The paper I received says: to the occupant
You are hereby notified that on march 1, 2013 property in which you appear to have interest will be forfeited to the... county treasurer for nonpayment of property taxes pursuant to Michigan compiled laws section 211.78. Persons holding legal interest in this property may lose that interest as a result of forfeiture and subsequent foreclosure proceedings. You have the right to pay the delinquent taxes, penalties, interest and fees by the end of business on February 28, 2013 and avoid additional cost and risk of loss of ownership. The forfeiture and foreclosure process begins march 1, 2013.
shellyar2011
Jan 25, 2013, 09:57 PM
I'm not sure what that means. It sort of suggests that (maybe) the seller pays the taxes but then the purchaser (OP) is supposed to reimburse him.
Another thought: usually if you pay the first year of several years of delinquent taxes, you can forestall tax foreclosure until you can get the money together for the later years.
He is supposed to send in writing anything else within 30 days of it being due this bill is from long before I bought it, I have also found out recently through my village water company that he has a bill due to them for $300 of blight tickets that will be added to the property taxes.
I have come to this state with my family only a few months ago for medical reasons, I picked up this house as an investment and put everything I have into it there is no way I could come up with that kind of money by the end of February.