Past Due Land Contract Payment notice – What is it?

In a land contract, the seller or owner holds the title of the property till the tenant makes the full agreed upon payment. However, the owner can send a Past Due Land Contract Payment notice when the tenant defaults on the agreed upon payment. Usually, an owner sends the notice with a 30-day time period within which the tenant is supposed to catch up with the back payments along with the late charges or vacate the property. If the tenant fails to clear the payments, then the owner can carry out a foreclosure on the property.

Required information for the notice

A Past Due Land Contract Payment notice requires the following information.

• Date of the notice

• Name of the tenant

• Address of the tenant

• The name of the city, state along with the zip code

• The month of default

• Outstanding payment

• The amount of late charge

The owner needs to sign the notice after filling out the necessary information.

What a tenant can do after getting the notice

After receiving the Past Due Land Contract Payment notice, a tenant can act in any of the following 3 ways.

• Vacate the property: A tenant can vacate the home so that the owner can give it on rent. In this case, the tenant is only liable to make the payments for the time he/she occupied the property.

• Catch up with the payments: A tenant can immediately catch up with the back payments along with paying the late charges.

• Wait for the court order: A tenant can do nothing but simply wait for the court to issue a judgment against him/her for the entire amount that is due.

All the above information is clearly specified in a Past Due Land Contract Payment notice. It also specifies that a tenant can always contact the owner to discuss about the available options or to buy some more time.