Expert: Dick Dennis - 1/6/2012

Question
QUESTION: We sold our house on land contract 4 years ago.  The buyer is falling behind on payments.  He wants us to take the house back.  We would like to just take it back.  What is the process to get the house back in our name?

ANSWER: Before I can advise you, Jerry, I would need to know in which state the property is located. You would need to hire a REAL ESTATE attorney to start the ball rolling and protect your rights. Not all states treat a land contract the same. Please let me know in which state the property is located. I do wish you well.

Dick Dennis
Lic California Real Estate Broker
#00349415
dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: It's in Wisconsin.  Thank you!

Answer
To protect yourself, Jerry, I recommend you consult and use a REAL ESTATE attorney to execute the necessary documents and have the reluctant payor sign the property back to you. In Wisconsin, a foreclosure usually takes about a year to culminate. So, you're much better off to take the title back as the borrower has offered.

However, it may be done by having the borrower execute (that means recording it, too) a QUIT CLAIM DEED to you. What that does is he would be giving to you whatever interest in the property he owns. But that does not protect you from any liens or encumbrances he may have caused to be  put on the property. That is why you may need an attorney to handle this matter.

Because foreclosures in Wisconsin take so long, it's going to cost you attorney foreclosure fees anyway, so you may as well use the attorney for a quit claim deed anyway. And it takes a lot shorter amount of time. I would also recommend you inspect the property to make sure you are not taking over a much larger headache.

The buyer purchased the property virtually at the top of the real estate market and most likely paid a price he believes is way too high for today's market. You may want to negotiate a lower unpaid balance with him. If you would consider that, I would recommend you have him bring all payments and costs (you need to make sure he is not behind in taxes, unless he has been paying them to you)up to date as a consideration for lowering his land contract balance. I know that's what I would do, because you may not be able to resell the property for anywhere near what you could get by negotiating a lower unpaid balance. I do wish you well.

Dick Dennis
dixiedee13@aol.com