[Penny18]

We are the seller in a contract for deed originating in the state of Missouri - we have had problems with late payments, unpaid taxes and now the buyers are renting out the property without any notice.

They are trying to sell the property through an agency.

What are OUR legal options? If they "give back" the property - what are the ramifications for us? What would our role be in the sale be - since we hold the deed.

ALso- we have a mortgage on the house.

[Fr_Chuck]

You have every right your written contract gives you. Your attorney who did the contract should have covered that with you??

In the contracts I do, on homes I sell.
If they are late on a payment, there is a 100 dollar late fee, that must be paid prior to any other payment being accepted.
If they are late 3 or more times, they are in default and the contract turns into a rental agreement, no longer a purchase contract and they forfeit all of their down payment.

** that is what mine says, that my attorney wrote for me, and I have used it in Missouri many times. What does your contract give you the right to do.

On taxes, I never ever have them pay, well they do, but it is added into their monthly amount they pay, so much goes to principle, so much for interest, so much for taxes and insurance.
Since as the seller, and it is still deeded to you, You MUST keep property insurance on it, since if they did, and it laspe, and then burnt, you are out of everything.

If they want other insurance to cover their interest, then they may buy it in addition. Often renters to cover content.

But what does your contract say, if they don't pay taxes, I would hope it puts then in default.

I allow my buyers to rent the home or sell the home, as long as I am paid, since many buy it on contract to fix it up and flip ( sell it for profit) As long as I get my full sales amount I don't care. In my contracts there is no prepayment clause, the entire contact has to be fully paid, so I make every penny interest off my contract.

If they "give" the house back, that means that they just cancell the contract and become renters, if they remain in the home, or you just rent or resale the house.

Most sellers want the people not to pay and move out, that is how you make the bigger money in this, I sold one home 5 times, I loved it. They pay about a 10,000 down paymnet, pay for 6 months to a year, and then can't pay, I find then in default, change it to a rental, evict them and then resale it over and over.

As long as you are getting a large enough down payment, have strict rules in contract and don't try to run a charity but do this as a business you can make tons of money

[ScottGem]

Go back and read the contract. What does it say about late payments, defaulting, sub-letting etc. Then you will know what your legal rights are.

If they default on the contract, you take back the property and put it back up for sale. Generally, a default reverts the contract to a rental lease. But you need to know what the contract says.