Expert: Dick Dennis - 7/7/2007

Question
I need to find out the general provisions on foreclosuring a Contract for Deed. (State of Montana) I know I will have to hire an attorney to do the actual foreclosure but I would appreciate and information you could provide. I am not asking for any legal advise, just the basics on a foreclosure.

Thanks a ton. BTW I was VERY impressed with your past experience and how helpful you have been to others.

George

Answer
As long as you are engaging a REAL ESTATE attorney, I will merely gloss over what needs to be done. Every state treats a contract for deed differently. Some call it a land contract. In any case, as you found out already, you still own the property while hopefully collecting from the buyer. At a certain point he was supposed to pay the entire obligation off. When he doesn't, then it is treated like a regular mortgage foreclosure as is proper in Montana. The buyer has what is called "equitable title" even though his name actually was not on title. In Montana, the foreclosure process is handled judicially (in the court). Usually, the costs of your filing your case are tacked on to what the buyer owes you . . . should he ever pay you back. As you may have found out, selling a property through a contract for a deed (land contract) is not one of the better ways of doing so. I do wish you well.