Forfeiture

In depth

Forfeiture is the seller's primary self-help remedy in many contract for deed states. After statutory notice and a cure period, the seller declares the contract forfeited, terminating the buyer's equitable interest and reclaiming title and possession. Payments already made are typically retained. Misconception: forfeiture is not always available; many states have abolished or limited it through case law treating contracts for deed as equitable mortgages requiring foreclosure. Practically, sellers must follow strict statutory procedures, including notarized notices, recording, and waiting periods. Buyers should know that forfeiture can be challenged when substantial equity has accumulated, with courts sometimes ordering foreclosure-style sales to protect buyer equity. Always consult state-specific counsel before commencing or contesting forfeiture.