Illinois law states that if I buy a residential property from a seller on an installment agreement and I fail to pay, the seller can evict me in court so the landlord can if the tenant is unable to pay the rent. can you
yes.
No.
yes i know. Another preconceived, vague, hopeful answer to what the law is.
In determining how an installment seller disposes/confiscates a purchaser from a residential property, the law stipulates whether an installment buyer is entitled to certain rights in the property.
Such an installment purchase is a contract entered into after July 1, 1987 to sell residential property to a purchaser who pays the purchase price in installments. If the buyer has paid more than his 20 percent of the purchase price, plus any interest due, the seller can only reclaim the property after the buyer defaults through a foreclosure action. If the buyer does not reach the 20% minimum payment, the seller can simply sue for eviction.
The difference between eviction proceedings (initiated by the landlord) and foreclosure proceedings (usually instituted by the mortgage lender) is that eviction proceedings proceed more quickly in court. An eviction lawsuit seeks a court to order a tenant to relinquish ownership to the landlord. The Illinois eviction law allows for an expedited court hearing to determine whether a tenant has violated a lease agreement and must relinquish ownership after the landlord files a lawsuit.
Under mortgage law, a party owes money to a lender who lent money to a buyer in order for the buyer to immediately pay the seller the purchase price. After that, the buyer has to repay the loan to the lender. As part of the loan agreement, the buyer gives the lender a title to the property (called a “mortgage”). A mortgage gives the lender the right to seize property in court in the event of default by the borrower under the loan agreement.
Foreclosure means that in a lawsuit the lender proves that the borrower is in default under the loan agreement and that the lender holds a valid mortgage on the property in question. . The lender orders the court to sell the property at auction to pay all or part of the debt remaining on the loan.
The same applies to installment sales, where the buyer defaults after paying 20 percent or more of the purchase price plus interest before the purchase is paid off. A seller can terminate a buyer’s right to a property through a foreclosure action like a mortgage lender. The foreclosure process can last for months, giving buyers the opportunity to remediate defaults and pay off outstanding debts before the property goes up for auction, much like mortgage borrowers do. can do.
Installment sales are typically used when the buyer does not qualify for a mortgage. The seller normally retains title until all payments have been made, but passes title to the buyer at the beginning of the contract.
So be aware of the legal minefield of home installment sales agreements.
We recommend that you hire a legal explosives attorney to draft or advise such a booby-trap contract.
Brett Kepley is an attorney with Land of Lincoln Legal Aid Inc. Please direct questions to The Law Q&A, 302 N. First St., Champaign, IL 61820.