Sending Certified Letter of Pre-Forclosure to Tenant

Rental Property Investor · Indianapolis, IN · Member since 2017 · 207 posts · 13 votes

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?

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
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?
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Tyler H.
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Rental Property Investor · Indianapolis, IN · Member since 2017 · 207 posts · 13 votes
8y
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.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
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.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y
@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?
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Tyler H.
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Rental Property Investor · Indianapolis, IN · Member since 2017 · 207 posts · 13 votes
8y
Originally posted by @Nathan Gesner:

@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.
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