The term is up and the buyer/owner just called her to say she can not pay her the full balance of the second loan which is due in March '07. What type of recourse does or would my mother have? Thanks in advance.
2007-01-25 08:07:58 · 3 answers · asked by Kim S 1 in Business & Finance ➔ Renting & Real Estate
She has a lien on the home, if she did this correctly, so she could in theory start foreclosure proceedings if the person defaults. However the home also carries with it the FIRST loan, so your mom could inherit the house but also the debt would have to be paid.
The buyer doesn't have to "pay her" the full balance-- tell the buyer she needs to refinance either just your mom's portion, or her first and second loan and get a new one to pay off your mom.
This is why people advise AGAINST carry-back loans.
2007-01-25 08:15:40 · answer #1 · answered by Anonymous · 3⤊ 0⤋
Good advice above. I would suggest she try to renegotiate the terms of the loan. Hopefully the borrower will be amenable to that, if not, get an attorney.
Best of Luck.
Joe...
2007-01-25 16:36:38 · answer #2 · answered by Joe K 3 · 0⤊ 0⤋
forclosure, but only if there is enough equity. get an appraisal, or have a realtor go by and give you a list of comps so you can determine the value. there should be some equity so she will have to forclose or keep accepting payments.
2007-01-25 17:23:44 · answer #3 · answered by Patrick G 4 · 0⤊ 0⤋