Q: Unable to make balloon payment in contract for deed, can we be sued for amount owed or can we just walk away?
7 year contract for deed for a lake property. We had a 20% down payment and have paid a large amount in monthly payments. In total we have paid over half of the purchase price. With permission from the seller we've been trying to sell for 3 years. If we are unable to sell we'd like to cut our losses at the end of this year but do not want to be sued. What is likely to happen if we do not make the balloon payment? Thanks!
A: The seller will likely send you notice of cancellation of contract for deed and if you fail to cure the default you will lose your prior payments / equity, and the property.
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