Owner Financing Eviction/foreclosure
I have a house that I owner financed - I was under the assumption that if the buyer defaulted on the loan, I would have to evict him. But it seems like it would have to be a foreclosure. Has anybody done this? If so, any pointers on how I go about it would help? Do I get the house back or do I have to sell the house in an auction? How does this work?
I would greatly appreciate any pointers.
Sounds like you didn't do all your homework when you sold the property. Evictions apply to tenants; foreclosures apply to owners who default on their mortgages. Foreclosure laws vary from state to state with the vast majority of states requiring judicial foreclosure (no self help). The timeframes also vary from state to state and depend a great deal or whether the case is contested or not. Contact an attorney or familiarize yourself with your state's foreclosure laws (if you plan on doing this yourself).
J
Thanks Jorge for that reply. Yes, I must admit I did not do my homework - it was being brokered by another person who led us to believe that it as simple as an eviction. We are from Texas, there is a non-judicial foreclosure process.
If you used a note and deed of trust you appointed a trustee in the deed of trust to handle the foreclosure. You can use them or file documents that you want to hire another trustee to foreclose, called a substitute trustee. This form must be filed before the sub trustee can proceed with the foreclosure. You may have to evict the people after the foreclosure process if they do not move out. If you are near Austin I can help you with this in person.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
Thank you for that response. I am in Dallas Metroplex - the broker that brokered the deal did not have his name as a trustee. Does foreclosure mean that you always have to have the property for sale even if the buyer has little or no equity in the house? If so, how do you as the original owner get back the house?
Are you on a friendly basis with the 'new owner'?
Tell them that you don't want to foreclose, but since they haven't made the payments, they can sign the home back over to you. Tell them that you'd much rather do this than foreclose on them and ruin their credit. Either way, you're going to get the house back. Then hit them with the ...and you'll even give them some money to move out
It will be cheaper for you in the long run than foreclosing against them.
And you end up looking like a good guy.
Hope This Helps!
Mrs. Meltzer