We have an owner financing contract that was executed nearly 2 years ago. Our clients were required to pay the taxes for the property. They neglected to do so in 2005 and 2006. Therefore, our lenders implemented an escrow account for the amount owed. This increased their payments. They decided to move out, break their agreement, and leave us with the payments until we can get it sold. What can we do to penalize them and possibly get our money back?
2007-02-02 07:24:08 · 6 answers · asked by Amanda C 1 in Business & Finance ➔ Renting & Real Estate
you didn'thave something in the contract as consequences if they should default? It really depends on the laws of your state as to what your options are now, especially if it wasn't specified in the original agreement. talk to an attorney. best of luck
2007-02-02 07:33:35 · answer #1 · answered by Steph C 3 · 0⤊ 0⤋
I don't understand about the contract. I take it by contract it was an option to buy, since you said they were to pay for the taxes on the property.It appears as if you are paying the mortgage after they pay you.
That appears to be a bad contract on your part. You should have sold them the house subject to the existing mortgage, gone throw an escrow closing agent. Now the house is in their name with you on as a 2nd mortgage. The taxes would also be in their name. The same arrangement with them paying you for the 1st mortgage as well as you for the 2nd mortgage that would have been established had you sold them the property.
Had that happened, at the stage you are at now you could foreclose on the property and get it back in your name if it does not sell at the foreclosure sale. If it sold at the foreclosed auction you would have gotten back your second money as well as any foreclosure fees it cost.
Of course you would have to make the monthly payments to the first mortgage, but you are doing that any way.
Well since you are in the situation you are in the best avenue for you is small claims court. Yes the People court or Judge Joe Brown, Judge Mathis.
Depending on how much they owe you. Check on the limit in your state. If what they owe you is below that limit then file in small claims. It will cost about $45.00 to file and about $75.00-$125.00 for the sheriff to serve them the court papers. You can do this yourself, but with the sheriff doing it you are better off.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-02-02 07:55:59 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
it quite is an incredible thought to proprietor finance the homestead. Now in the event that they build on it and default on your word you may then foreclose. something on the lot then turns into yours. maximum lenders as quickly as the form has been finished will pay off the land very own loan so in all probabilty you will no longer have an interest in the land. till now the form start up the lender might even ask you to subordiante to a shape very own loan. you're able to chosen to no longer gain this, then likely the lender won't lend on the form very own loan. in case you chosen to subordinate to a shape very own loan you will replace right into a 2d loan concern on your individual loan being paid off on the instant after the form is done. you're able to word a subordinate settlement this way so which you would be secure and paid off whilst the form is finished. i'm hoping this has been of a few use to you, stable success. "combat ON"
2016-11-24 19:36:33 · answer #3 · answered by ? 4 · 0⤊ 0⤋
If you have a contract you can file suit against them. In my state you can file in small claims court for amounts under 6000. Small claims is the easiest b/c it is fast and the rules are more simple. If you do have to file in a superior/circuit court you would probably need an attorney
2007-02-02 07:44:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
"... leave us with the payments until we can get it sold.." It's not your house. You cannot sell it until you foreclose on it. Meanwhile, make sure the payments get made. Since it's not your house (if you really did sell it and transfer title) then I don't think you can even put a tenant into it to cover the payments while you go through the foreclosure proceedings.
2007-02-02 16:30:00 · answer #5 · answered by teran_realtor 7 · 0⤊ 0⤋
Do you have a recorded note? I am sure you can move for a judgement lien so that is shown on the credit report. File a civil suit to collect the debt...
2007-02-02 07:32:36 · answer #6 · answered by boston857 5 · 0⤊ 1⤋