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In forfeiture, the seller cannot accelerate the debt. Therefore, the vendee can cure by paying the past-due monthly payments. If the seller wants to terminate the land contract and evict a vendee in chronic default in a foreclosure, the seller can accelerate the debt, making it harder for the tenant to cure.

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. First, the seller must serve a written notice of the forfeiture upon the buyer.

Land contracts can make property easier to sell because the seller decides the credit requirements and down payment amount. The parties can also negotiate the monthly payments, including whether there will be a balloon payment. A balloon payment is an unusually large payment due at the end of the purchase period.

The most common action (called a ?remedy?) a seller takes is to forfeit (cancel) the contract. A much less common remedy is foreclosure. A seller can use either remedy for any breach of the contract.

A land contract in Michigan grants buyers an equitable title to gain immediate control over the property. However, the legal title remains with the property owner until the fulfillment of the land contract. Furthermore, the interest rates on land contracts in Michigan cannot exceed 11%.

Some land contracts have monthly interest rates. Interest rates are added on top of monthly payments and cannot exceed 11% in Michigan. In 2021, the average interest rate was 2.96% for a 30-year fixed-rate traditional mortgage in the state. Final total price.