Installment Land Contract Default in PA

[Audrey C.]

I have scoured this site for advice but nothing specific to my issues popped up.  I owner-financed a small property in Ridord, PA that is under an installment contract or contract for deed for 15 years starting Sep 2015.  So technically, I have the title.   I have spoken to a RE attorney 10 miles away in "town" and he advised that I send a Termination Notice be first and the owners have to cure their May late payment within 30 days of the served notice (or move out).  Now this will be June 9.  They have been late twice last year (2016)  for the months of April and June, due to his layoff and I agreed to somewhat modify their loan, so these two are added to the end of the 15 year term.   Since those last two that got pushed to the end, they have been continuously late every month with creative excuses.  This month is the latest that they have not paid as today is the 25th.  This time, I cannot even get them to respond with emails, texts, voice mails, and the served Notice to Terminate.  I even got threatened once by the husband that he is going to call their attorney on me as I am harrassing them.  I told him that I did not break any laws as I was following the terms of the contract.

I am trying to see whether anyone out there has experiences with the PA installment land contract laws and the timeline for default and foreclosure.  I know it is a judicial state.  Do I have no choice but  to  pay expensive attorney fees to get this done, as I do not live in PA but here in TX.  I think the couple are playing games with me and will pay May's  as close to the end of the 30 days as possible and they basically will owe me again for another month for June.  So collectively, they owe me 3 payments.  Please help!!

[Chris K.]

@Audrey C.

First question you have to ask is whether the "Installment Land Contract Law" applies. I am not sure where "Ridord" is, but your lawyer should be able to answer that question. Assuming it does, the statute explain the type of notices you have to give. Once you give those notices, you typically start an ejectment action instead of a foreclosure action to recover a possession. In some cases, you may need to do a quiet-title action as well --- although I'm not sure if you would need to do so in this scenario. I would talk to your lawyer about this. 

Hard to comment on timing --- I would prepare for at least six months. Depending on how clever the current tenants are, they could potentially drag it on for lot longer. 

As always, explore the possibility of settlement. 

On a somewhat related note, I would refrain from contacting these tenants by texts, phone calls, or voicemail for these kinds of issues. Send proper formal notices and letters when dealing with this kind of situation. I doubt that creditor protection laws apply to you, but it creates unnecessary tension with you and the tenants.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.