How to handle defaults and delinquencies in owner and seller financed land purchases
The first thing you should do if the buyer defaults on their payments is try to contact them and find out why they're behind. There could be a perfectly reasonable explanation, such as a job loss or medical emergency. If that's the case, you may be able to work out a new payment plan that's more manageable for them. However, if the buyer is simply unresponsive or unwilling to work with you, then you'll need to take further action.
If the default is due to non-payment, you can send a demand letter giving the buyer a certain amount of time to catch up on their payments. If they don't make the payments within that timeframe, then you can begin the process of foreclosure. This is a legal process whereby you regain possession of the property and can sell it in order to recoup your losses.
It's important to note that even if the buyer is current on their payments but has violated some other terms of the contract (such as by damage to the property), you may still be able to begin foreclosure proceedings. However, this will vary depending on state laws, so it's best to consult with an attorney beforehand.
Conclusion: Defaulting on payments is a serious matter whether you're financing the purchase of land from an owner or selling land on terms. It's important to take quick and decisive action in order to protect your investment. By following the tips outlined above, you'll be in a good position to weather any storm.