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Updated almost 9 years ago on . Most recent reply
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Purchaser defaulted on LC pymts; can I collect rent from tenants?
Hi BP Family,
So, I'm in a bit of a sticky situation. I sold a property on Land Contract (in Michigan), and the purchaser defaulted on payments one month after signing the LC. It's been a long time (so long it's too embarrassing to say), and now I am going through the forfeiture of LC proceedings. I also have to pay back taxes for the last 5 years before the county gets the house. I have been in touch with the current tenants, who the delinquent purchaser has leased to. They are willing to redirect their payments to me, since they know I am regaining ownership of the property. It can take up to 4 months for this to happen. My question is can I redirect their rental payments to me since he has completely disregarded his responsibilities, and I am regaining ownership? What's the risk for me and the tenants? I know this is a legal question, but any input is appreciated