Final Notice of Default for Past Due Payments in connection with Contract for Deed - Michigan 2025

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A seller needs to go through circuit court to foreclose on a home. Unlike mortgage foreclosures, a seller in a land contract cannot foreclose by advertisement. They must go through the courts. To learn more about judicial (court) foreclosures, read Foreclosure and Eviction for Homeowners.
Usually the rent, or a portion thereof, gets applied to the purchase price. Also, there is a downpayment, which is an good faith deposit. If the buyer defaults on the rent or the land contracts terms, then the buyer forfeits that deposit to the seller and the land contract is void.
MCL 600.5726. If there is a default (buyer fails to pay the installments due under the contact or breaches the contract), seller may seek to retake the possession of the property through the forfeiture process.
If a buyer defaults on a land contract, the seller can take legal action through a process called land contract forfeiture. This may result in the buyer not only losing the home, but also all the payments theyve made so far.
The buyer could also file a complaint asking the judge to cancel or rescind the contract. If the contract is rescinded, the buyer would be entitled to get back money paid to the seller. The buyer would then have to surrender any claim to ownership of the home.
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(1) When the vendee named in a land contract, or his or her heirs, successors, or assigns, has fully paid and performed the obligations under the contract that are a precondition to the sale and conveyance of the land, the vendor named in the contract shall make conveyance of the land to the vendee by a deed of
Notice of default: When a buyer defaults on their payments, the seller must first provide them with a notice of default. This notice typically gives the buyer a certain amount of time to cure the default or risk foreclosure. The notice must be sent in ance with the terms of the land contract and state law.
MCL 600.5741. If a judgment of possession is granted, the buyer has 90 days to redeem the property if less than 50% of the purchase price has been paid or 6 months to redeem if 50% or more of the purchase price has been paid.

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