Owner financing advise?

Question

i lived in Montgomery, al and had to move for job to TN. Every realtor told me I would have to bring 10 grand or more to closing table to get out of it. So I did owner financing with this couple, they had a 13,000 down payment, which our realtor said that was surprisingly high and that showed they are serious I bout wanting the home. Long story short they pay every month but are extremely late and are behind 4 months on late fees owed.

I have tried for weeks to try and get ahold of the tenets to give them a good offer for them to take the home under their own loan, but they are ignoring my calls. I think I should evict them, but I'm worried about the mortgage payment fully on me until I can get it sold.

Any advice??

Thanks!

Jeremy Pace · Answer

@Manny Crochet what kind of owner financing did you use?  I think that may influence my response.

Manny Crochet · Answer

if I do evict them, I can't afford to pay 2 mortgage payments, so I would need to get rid of quickly. Any advice on that?

Manny Crochet · Answer

speaking with my property manager and the attorney that we went through, I can evict them by filing an unlawful detainer. I guess I got screwed from my realtor, b/c I was hesitant to do owner financing, but my realtor made it sound like I can't lose. Saying if they don't pay me within 30 days of due date take them to court and they owe me price of home that we agreed on. After speaking with attorney and property manager, they only pay what is owed to me, no judge would make them pay the amount that they agreed to pay.

Jeremy Pace · Answer

There sounds be a non-payment clause in your land contract that dictates how you proceed.  Do they owe you any payments, or just the late fees?

Usually a land contract can be ended by an eviction.  But you'll have to check with some legal counsel to be sure.

If you do end up pushing them out, you can always do the same thing again, but structure it as a Lease Option, with NROC (non-refundable option consideration) instead of a down payment.  Then there won't be any question about how to get rid of them if they don't pay.

Steve Vaughan · Answer

I don't always recommend obtaining legal advice by any means, but I would be running this by a competent RE attorney @Manny Crochet.  After you look up what medium of owner financing you agreed to that is.  Can't evict a purchaser!  Get some help in the area of the property.

Manny Crochet · Answer

I'm gonna check to make sure but I'm pretty sure it was land contract

Jeremy Pace · Answer

@Manny Crochet did you do a lease option with the tenant? or a land contract?

Manny Crochet · Answer

sorry don't know much about this stuff, what do you mean what kind of owner financing?

Kris Haskins · Answer

oh man, most tenants dont end up buying.  you'll eventually take that baby back so start preparing now.....

Owner financing advise?

Most Popular Reply