Foreclosure Requirements for CFD

[Brittany P.]

Reaching out to all you note/CFD veterans again.

It's my understanding that in certain states, for delinquent/non-performing CFD's, you must go through a standard foreclosure process (once all other methods like forbearance and modification have been exhausted). In these states I assume that just like a standard foreclosure, all funds acquired during the sale that exceed the outstanding contract balance and any liens on the house go to the contract buyer (vendee?)--i.e., the person living in the property.

Let's assume I'm correct with the above (please set me straight if that's not the general case). What about for CFD's on vacant/unimproved land? There's no one (theoretically) living on the parcel--no improvements that would allow someone to make the parcel their residence. In the event of default/non-performance on a CFD for vacant land in one of the hypothetical "foreclosure" states I mention above, does the land parcel have to go to auction, with bidding starting at the unpaid principle balance of the contract (plus late fees, legal fees, etc.)? Or is it enough to give the buyer/vendee multiple notices, terminating with, "If the defect is not cured by XXXX date, the contract will be considered terminated"? If no one's living there, do you have to foreclose like in a CFD foreclosure state?

Hoping someone has some insight--thanks!