Seller Finance Foreclosure

[Nikki Perry]

Hello,

I am the seller in a seller-financed real estate transaction, and the buyer has repeatedly failed to make timely payments. The buyer is currently delinquent for the November and December installments. I have issued a Texas Notice of Default and Intent to Accelerate, with a cure deadline of December 21, 2025, in the amount of $5,071.61. If the buyer fails to cure by this deadline, I intend to move forward with foreclosure.

The property was sold for $380,000. I still hold a first mortgage of $123,000 in my name, and the seller-financed carryback amount is $242,000. Given this situation, I am seeking guidance on next steps available to me as the seller, including foreclosure procedures and protecting my financial interests.

I would also appreciate recommendations for a real estate or foreclosure attorney in Tarrant County, Texas. This experience has been extremely challenging, and it will be my first and last seller-financing arrangement.

Thanks,

[Bruce Lynn]

Quote from @Nikki Perry:

Hello,

Please tell me you are using a servicer and an attorney to handle this and that you are not DIYing it.  If you are DIY I would immediately engage the services of a board certified real estate lawyer that is a regular trustee of foreclosures.
There are some things you can DIY, but I would suggest 99% of investors are not able to be compliant with servicing loans and foreclosing loans.

You may well get lucky, but the risk involved of DIY is huge.  Your borrower could own the house if you don't do it right.  That's how much risk there is.   This may sound harsh and it is, but just the reality of the situation.