Owner Financed Tenant Abandoned Property-How Do I Take It Back

6 Replies

First of all - Thank you to anyone who can offer advice on this situation. This home is in Volusia County Florida. 

I need advice on how to redeem a property that was owner financed to a tenant. The tenant stopped paying and has abandoned the property. How would I go about taking back the property? Do I have to go through the whole Foreclosure process?

The seller owns the home outright - no mortgage on the home. The seller allowed the buyer to do owner financing on the home with a 30 year mortgage. The tenant stopped paying and has moved out and abandoned the property. It has been 5 months since the home has been occupied. The tenant is also not paying insurance on the home which was in the contract.

How would the seller go about taking the property back? Is there a quick and easy way to take back the property? Please any advice would be greatly appreciated.

I'd recommend an attorney on this. Looks like you will need to do the whole foreclosure thing to legally regain title to the property, but your posting a little confusing.

Are you "the seller"? If so, call the attorney and start the ball rolling.

I am helping the seller get back the property. I am not the seller - I am writing on behalf of the seller. 

We have already posted the 3 day notice. We informed the borrower of the default with certified mail. 

We were just hoping that since they abandoned the property, it would be easier to get the property back. 

Hopefully the seller was sending delinquency notices accordingly throughout the process. That being said, they would have to foreclose through the recourses afforded in the State of Florida. Hiring an RE attorney to assist would be advised. 

@APRIL S. a tenant and a seller are not the same thing and the process for retaining possession rights to the property are different depending on which it is you are actually dealing with. 

If the seller owner financed the property to someone else then they are not dealing with a tenant even if the property is tenant occupied. 

The 3 day notice is generally for non-payment of rent. A well serviced mortgage would have a late notice after every missed payment. All things considered, I would suggest going to an attorney right away as there are steps that should be taken with the servicing of the mortgage before filing for a foreclosure. The sooner you do so the better.  

Yep, you're friend needs an attorney, now.  First, a financed buyer is not a tenant.  We don't know exactly what happened in the "sale".  Did title actually change hands/was a deed signed by the owner and recorded, and a mortgage was recorded?  If so, it's either a foreclosure, or a Deed In Lieu signed by the buyer.  Don't go by what the seller "thinks/remembers" look at the documents and recordings in the clerk of court, available online.

I think the solutions are as follows:

If it truly is sold and your friend is the lender and the "tenant" is actually the owner, then the easiest route will be to locate the tenant/owner and get a deed-in-lieu signed. If that's not possible, then you'll likely need to foreclose. They probably won't show up to contest and then it will go to auction and you're buddy will set whatever bid he's willing to sell the property for up to the maximum allowed which includes principal+interest+attorneys fees+penalties.