Here is the situation:
My stepdad and his partner sold their business and building a couple years ago and retired. My Stepdad passed away last year leaving the contract for my mom and his/her partner to collect on. I want to help both of them get their money.
The people that bought the business and property payed good at first then started paying here and there, now they are not paying at all. My mom and business partner do not know what to do.
I don’t think the not paying Is financial, they have two nice big houses we know of and still travel for fun. My fear is they are going to make their money, run the property into the ground and walk away leaving my mom and business partner holding the bag on a run-down building needing repairs and unable to sell.
I have come up with two options. They foreclose and resell the property, they don’t really want to put in the effort (they are both too nice and don’t know how to go about it). So, my options are for me to either help them proceed with a foreclosure and resell the property, I would then borrow the excess profits at a fare rate to invest in more real estate. The other option is for me to buy their contract and do it myself. The option chosen is completely up to them. I have a feeling the purchasers will find the money once the foreclosure process is started.
I believe there is equity in the building, and it could be a win-win situation. I need to contact an attorney in Memphis to discuss the options and legalities.
I think this could be a great learning experience for me.
If there is a better forum category please let me know
I have been in touch with an attorney that I was referred to. This looks like it is going to be a legal matter. I will post more information as this situation unfolds.
Just a quick update. We have retained an attorney and are waiting for him to gather more information. Once the information is gathered, he will direct us on the best way to settle this matter.
I hope everyone had a great Thanksgiving
Update: Now that the holidays are over we are moving forward again. The attorney is drafting letters to the purchasers addressing the situation. the first step will be to establish dialog and start receiving payments again, or hopefully they will refinance (or something) and pay off the loan. if this does not work then we will continue with the foreclosure process and sell the building.