It's the economy, what more can I say? Tried to sell 5 acres of bare land for a year, no interest. Now wish to default on land sales contract. What punitive actions may the seller take against me? If the seller receives the land back, may the seller also send me to collections? I imagine the seller could report me to the credit bureaus, how devastating is that and for how long to my credit rating? Is this action as bad as a BK or mortgage default? If this is state specific, the property is in South Central Colorado.
1 What punitive actions may the seller take against me? Sue you
2 If the seller receives the land back, may the seller also send me to collections? Yes
3 I imagine the seller could report me to the credit bureaus, how devastating is that and for how long to my credit rating? Is this action as bad as a BK or mortgage default? Magic 8 ball not available
It isn't as simple as the jason pretends it is. The land sales contract makes things hazy. If you had a regular mortgage on the land, it would be much simpler. What exactly does your contract state in case of default?
EDIT: OP, what happens in case of default is something that should have been fully understood before the contract was signed. However, I believe there are people here that may be able to help with your question.
WalStMonky
Happy Member
posted: Nov. 14, 2009 @ 4:33a
The objective in most land contract sales is to collect payments until the buyer defaults, then take the land back and sell it again. Guys that do this for a living are more annoyed by the people that make the final payment than by the ones that restock their inventory after paying them a substantial amount of money. I don't think I've ever seen a land contract that wasn't a non-recourse instrument.
OP, does the seller do more than one of these a month? Perhaps you bought it from a land company like this one? I can guarantee that if you bought from that outfit that they'll smile if you give them the DIL without any hassle. Call the seller. Tell him you can't make the payment, won't be able to in the future. Ask him if he has any problem if you drop by and give him the keys and sign the papers. Betcha dirt to dollars after a bit of hemming and hawing they say 'sure, what time will you be here?'.
oldfatbroad said: It's the economy, what more can I say?I swear, if it hear a person say "its the economy" one more time, I'll either vomit or start throwing punches.
dcg9381
Senior Member - 1K
posted: Nov. 16, 2009 @ 4:20p
jason243 said:
3 I imagine the seller could report me to the credit bureaus, how devastating is that and for how long to my credit rating? Is this action as bad as a BK or mortgage default?
Negative - can't be done otherwise we'd be reporting each other all over the place. If you're sued and an unpaid judgment results, that can show up.
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