Michigan Land Contract Forfeiture Judgment
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A land contract is a legal and financial agreement between a buyer and seller where the buyer agrees to purchase the property by making regular payments until the total value of the property is paid off. However, if the buyer defaults on payments, the seller can take legal action to regain ownership of the property. This legal action is called a land contract forfeiture judgment.
In Michigan, a land contract forfeiture judgment occurs when the seller starts a legal process to take back ownership of the property due to the buyer`s default on payments. The seller must initiate the process by filing a complaint in court.
Once the seller files a complaint, the court will serve the buyer with a summons and a copy of the complaint. The buyer then has 21 days to respond to the complaint, and failure to do so will result in a judgment in favor of the seller.
If the buyer responds within the 21-day period, a hearing will be set to determine if the buyer has defaulted on payments as per the terms of the land contract. If the court finds that the buyer has defaulted, the seller will be awarded possession of the property, and any payments made by the buyer will be forfeited.
It`s essential to note that the court can order a redemption period for the buyer to catch up on missed payments and retain ownership of the property. However, if the buyer fails to make the payments as per the court`s order, the seller can regain ownership of the property.
In conclusion, a land contract forfeiture judgment is a legal process initiated by a seller to regain ownership of a property due to the buyer`s default on payments. If you`re involved in a land contract in Michigan, it`s crucial to understand the terms of the agreement and ensure timely payments to avoid a land contract forfeiture judgment.