QUESTION
What rights do I have concerning forfieture do I have 5 years after a Quit Claim deed was signed?
Asked on Aug 04th, 2018 on Real Estate - Michigan
More details to this question:
I currently own a home that I am buying on a Land Contract. We signed and filed a Quit Claims Deed all on the same day almost 5 years ago. Though I have been delinquent on payments, I only owe 5 more months on the contract and now the seller wants to take the house back. I offered to either make another monthly payment, or pay off the remaining $3000. She has refused, and says she wants the house. Her intention is to show up at the house with a new Quit Claim for me to sign, without going though the courts first. If I have the remaining $3000 in hand, does she have to accept it and close out the contract? I have not found anything in the Land Contract or Quit Claims that specifically states anything about foreclosure or forfeiture. There IS, however, a clause that states a $20 late fee, though she has NEVER acted upon it. Only the Quit Claims has been notarized and filed with St. Joseph Co. Also, I have made the payments to her directly, there is no traditional mortgage.
1 ANSWER
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Based solely on what you describe, you should refuse to sign a new quit claim deed and renounce the one you signed when you signed the land contract.
If you have performed your obligations, the seller cannot get the house back. If you have not performed, she has to either forfeit or foreclose the land contract, both of which require court action. (If she tries to rely on the deed you signed on the same day you signed the land contract, you should object that that deed was an unlawful attempt to deprive you of the rights provided by law.) If she tries forfeiture, you could defeat it by curing any delinquent payments. If she tries foreclosure, you could defeat it by paying the full amount due on the land contract.
I would recommend you give her a letter offering to give her the entire amount you think is owed on the land contract and requesting that she give you the deed in fulfillment at the same time. The letter should request that, if she disagrees with the amount you claim is owed, that she provide what she thinks if the balance due and documentation to support her number.
Answered on Aug 06th, 2018 at 6:46 AM