If I do an owner finance and the buyer doesn't make the payments How hard is it to reclaim the property?
It is a mobile home and banks will not finance it since it is a 1977 model wpould you do this?
- Christin KLv 74 weeks agoFavorite Answer
You financed a purchase for someone else and they defaulted. Your only option for reclaiming the property is now the court system--you must bring a lawsuit against your purchaser for non-payment. Since this wasn't a "mortgage" you do not have to go through foreclosure--foreclosures are served by banks or financial institutions, not individuals. The property is the "collateral" for a mortgage--but in a purchase agreement there may be no collateral. Serve your tenant with a notice that you will be suing him or her for the balance of the purchase agreement--for something called "specific performance" meaning the buyer did not pay as agreed in the contract.
I hope you HAD a contract. Check the clause that handles when the buyer defaults for your remedies. There should be a clause like this if it's a standard contract.
If you didn't have a contract, you're going to have a very hard time getting the tenant out and/or getting him to pay. To get the tenant OUT you'll have to go through the courts for eviction. There is a hold on evictions right now--so you'll have a very difficult time doing this.
My suggestion is to get yourself an attorney right away and let the attorney guide you in the specifics of the lawsuit and recovery of your property--through whatever eviction or removal process you do have access to and the costs involved. One way or another, it will cost you money to recover your property and remove your non-paying tenant. And you may lose a court case, depending on the circumstances. But start by hiring an attorney. .
- R PLv 74 weeks ago
Based on the limited info you provided, you would have to foreclose on the property in order to get it back.
- ScottLv 74 weeks ago
That depends on the contract you had the buyer sign. It should contain a paragraph about buyer default and the remedies available to you.
- realtor.sailorLv 74 weeks ago
If the land is included then you have to foreclose. Even when foreclosures are finally permitted it can take 6-18 months.
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- linkus86Lv 74 weeks ago
Not so hard if you aren't also selling the property that the trailer sits upon. It is more like repossessing a car with the additional hassle of filing for an eviction once the title is reclaimed to regain physical possession.
- SlickterpLv 74 weeks ago
You have to foreclose, just like a bank would.
- A HunchLv 74 weeks ago
You have to foreclosure and follow all proper foreclosure laws in your area.
- Anonymous4 weeks ago
I would be extremely wary. The banks aren't touching this for a reason, and that is generally because they don't think they will get their money back if the buyer defaults.