I have rescinded a contract for deed due to default
Full Question:
Answer:
County recorder procedures vary by office. I suggest contacting the following:
Hill County Clerk PO Box 398 Hillsborough TX 76645 (817) 582-2161
If the buyer has made fewer than 48 monthly payments or have paid less than 40% of the amount due under the contract and defaults under the contract, the seller may
(1) rescind the contract, orHowever, the seller must comply with strict requirements first.
(2) exercise his remedy of forfeiture and acceleration.
*The seller must send by registered or certified mail, a notice containing the following language in 14-point type, "YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO BUY YOUR PROPERTY. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS NOTICE BY (date) THE SELLER HAS THE RIGHT TO TAKE POSSESSION OF YOUR PROPERTY."
*The notice must identify and explain what remedy the seller intends to enforce if the buyer doesn't comply.
*If the buyer failed to make a timely payment, the notice must provide:
* the delinquent amount, itemized into principal and interest;
* any additional charges claimed; and
* the period to which the amounts due relate.
If the buyer has failed to comply with some other term of the contract, the notice must identify that term and specify the action he/she must take to cure the violation. The notice must also advise of the right to cure the default within 60 days of the date the notice is mailed. The seller must allow the buyer 60 days to cure the default before enforcing a remedy, regardless of what the contract says.
If the buyer defaults under the terms of the contract, and has paid at least 40% of the contract price or has paid at least 48 monthly installments, then the seller cannot enforce the remedies of rescission or forfeiture and acceleration.
