Sending Certified Letter of Pre-Forclosure to Tenant

5 Replies

I need to send a certified pre-foreclosure letter to a tenant. Does anyone know how this process works in the state of Indiana? Does the tenant get 30 days notice? 

Originally posted by @Wayne Brooks :

Not sure what a “preforeclosure notice” is.....explain if it’s some state specific thing.
Does the tenant have a lease, or month to month?

 He is buying (on owner financing) a package of two homes from us. He has not paid his first two months of payments. We have tried numerous times to get a hold of him but no response. 

You need a local RE foreclosure attorney....it's apparent this is not a DIY project.  I'm betting it's not called called a "preforeclosure notice", a notice of default maybe.  Fed laws regulate foreclosure proceedings, which have multiple steps and 90/120 day minimum timelines.  Screw it up in the begiining, and when you think you've gotten to the end, it all gets thrown out, and you start over.

@Tyler H. I hope you had a good attorney or REALTOR help set this up. 80% of owner financed purchases fall through. I mean, these are people that typically can't qualify with a bank.

Did you run their credit or check their finances? 

Did you charge a large down-payment that becomes non-refundable in case of default?

Originally posted by @Nathan G. :

@Tyler H. I hope you had a good attorney or REALTOR help set this up. 80% of owner financed purchases fall through. I mean, these are people that typically can't qualify with a bank.

Did you run their credit or check their finances? 

Did you charge a large down-payment that becomes non-refundable in case of default?

 Thank you for your response. You're right, not all owner finance deals will be successful. Yes, they did make a 30% down payment for both homes. I am going to consult an attorney before sending the letter.