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Seller Not Paying Mortgage on Land Contact Home I purchased?

I brought a home over a year ago on a land contract. The terms of our written contract were that I would pay the seller for three years on a land contract. And at the end of the third year would seek financing for the home. This week I received a letter in my mail boxe with no envelope from the bank the seller purchased the home from. The letter stated the seller's Mortgage was in default and if the past payments and payment due next month weren't received house would be placed in foreclosure. All of my monthly payments have been paid on time and I have paid my March Payment at this time. What recourse do I have at this time? I have contacted the bank regarding the foreclosure status of the home I reside in. But since i am not the buyer they weren't able to provide me with any information. I feel that I should retain my monthly house payment for April. If he is losing my home why would I be paying him to have him pocket my money and not pay the mortgage company. I reside in Michigan and I am not sure of what the laws are concerning the Land Contract buyers. Please I need advise as soon as possible. I can tell you that I haven't contacted the seller because I talk to him every month and not once has he mentioned his lack of paying on the home I am purchasing from him at this time

Public Comments

1. You need to contact a lawyer immediately. This is a very complicated issue, and the correct answer may vary depending on a number of factors. First, gather your land contract in hand, and go see your lawyer.
2. Unless you added his mortgage into your contract you can not take action based on that. As soon as you without a payment he can evict you as a tenant, you are legally a renter at this point, not a property owner.
3. Get a lawyer fast! And don't pay him anymore until you have some resolution. Investigate refinancing now to buy him out.
4. You need to take your land contract back to the lawyer who drew it up and have him review your default remedy. HOPEFULLY you used a lawyer. If not, time to find one. You could be due anything from the equity you have in the property in the event of a default to nothing at all depending on how the contract is written
5. IF you have paid by check only for the last year then refinance it now as FHA will view this as a refinance and get the current owner to pay closing cost and prepaid items since he is in default. BUT start today call a mortgage banker in your area and get started NOW
6. Contact an attorney NOW. Do not delay.