Owner financing - buyer does not pay

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theconsul

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As the title says: we sold a property with owner financing but the buyer does not pay.

The buyer is days away from the second payment and we suspect she will not pay.

At signing the buyer asked for quarterly payments and we agreed which was not smart but this is how it is.

Meaning she has the keys to the house for almost 6 months and we did not see a penny.

15 days later then the first payment she received a first official warning and now the 15th of august she will receive the second official warning.

Only after that we can start the legal procedure to get the keys back and remove her out of the house.

We want everything to be done according to law but she can play this game and we will not be able to access the house for another 6 months, that will be 1 year without payments except the deposit she made.

Is there anything else we can do? We are losing a lot of $$ like this.

Another catch is: we live abroad in Europe and she in the US.

Any thoughts on this?

Thanks in advance

Tc
 

irishpaddy

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Sep 3, 2013
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my only suggestion....make you way to the nearest Catholic Church....enter and make haste for the candle section....I would suggest lightning two candles {it will be looked at more favorably from the man above } ...then kneel down and say one "our father...3 hail marys "...and then you wait for divine intervention
miracles have happened
 

southern

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The legitimate honest way, lawyer up. The shady way, hire a local taxi mafioso and tell him he and his family can live there for free for 3 months, believe me, they will move in
 

DR Solar

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my only suggestion....make you way to the nearest Catholic Church....enter and make haste for the candle section....I would suggest lightning two candles {it will be looked at more favorably from the man above } ...then kneel down and say one "our father...3 hail marys "...and then you wait for divine intervention
miracles have happened
And another great suggestion. Geeezz.

The law favors the renter. Hire a Lawyer. One is recommended all the time and does good work. Been their and done that. You are not going to be happy.
 

Mauricio

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Nov 18, 2002
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And another great suggestion. Geeezz.

The law favors the renter. Hire a Lawyer. One is recommended all the time and does good work. Been their and done that. You are not going to be happy.


He's talking about a buyer, the law doesn't favor a non paying buyer.
 

TropicalPaul

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Sep 3, 2013
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I know this isn't helpful to the OP, but the only practical way to do Owner Financing is to make sure that you are always ahead of what you would have got if you had rented the property. So the buyer pays for example the equivalent of a year's rent in deposit. That way, if they don't keep the repayments then you haven't lost any more than you would if they had rented. Easy to be wise later on.
 

beeza

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Nov 2, 2006
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If the buyer is in the US as you say, why can't you get someone to repossess the property, remove their belongings or even sell them in lieu of money owed and change the locks? You are not evicting them if they're not living there.

Perhaps the real estate agent who facilitated the sale could help.
 

USA DOC

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Feb 20, 2016
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I know this isn't helpful to the OP, but the only practical way to do Owner Financing is to make sure that you are always ahead of what you would have got if you had rented the property. So the buyer pays for example the equivalent of a year's rent in deposit. That way, if they don't keep the repayments then you haven't lost any more than you would if they had rented. Easy to be wise later on.
...Dont forget the large damage deposit...if they are not making the payments, you will probably find the property in need of work...Doc....
 

theconsul

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If the buyer is in the US as you say, why can't you get someone to repossess the property, remove their belongings or even sell them in lieu of money owed and change the locks? You are not evicting them if they're not living there.

Perhaps the real estate agent who facilitated the sale could help.
that is an idea but not legal

we want to re-sell or rentout the house which we can not since we have a contract with the buyer
 

irishpaddy

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Sep 3, 2013
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sometimes the "right way " is not the legal way and surely if they are not paying ,they have broken the contract not you
 

LTSteve

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Jul 9, 2010
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As the title says: we sold a property with owner financing but the buyer does not pay.

The buyer is days away from the second payment and we suspect she will not pay.

At signing the buyer asked for quarterly payments and we agreed which was not smart but this is how it is.

Meaning she has the keys to the house for almost 6 months and we did not see a penny.

15 days later then the first payment she received a first official warning and now the 15th of august she will receive the second official warning.

Only after that we can start the legal procedure to get the keys back and remove her out of the house.

We want everything to be done according to law but she can play this game and we will not be able to access the house for another 6 months, that will be 1 year without payments except the deposit she made.

Is there anything else we can do? We are losing a lot of $$ like this.

Another catch is: we live abroad in Europe and she in the US.

Any thoughts on this?

Thanks in advance

Tc
Dum question. Didn't you have a lawyer draw up the contract in the first place? If not that was a serious error in judgement on your part. Secondly, no one does quarterly payments. That should have been a red flag. Third the contract should have had a clause that the property reverted back to you in case of default, no payment. If I were you I would get on a plane and go to the property and changed the locks immediatley. I would notify the "buyers" while you are in the DR that they need to wire any money owed immediately otherwise they are in breach of contract and foreclosure will begin immediately starting with the locks at the property being changed. If you have any of their money I would also make it clear that they will forfeit this That is why in any real estate transaction, especially if you are a foreigner a DR attorney should have been a no brainer. I know what the law says but you are not from there and either is the buyer. Do either of you have DR residency or citizenship? Since the buyers are in the US I would call them directly and give them the benefit of giving you an answer. If they are not willing to talk to you than have an attorney in your home country send them a fax or text notifying them that he will co-ordinate legal proceedings against them. Make them feel uncomfortable and intimidated. Did you do any vetting of their financial situation before you agreed to this arrangement? It doesn't sound like it. That is why people use realtors and lawyers. You don't sound like you had any real idea of how this sale should be done and were trying to nickle and dime to save money. Now it is going to cost you more. Good luck
 

rice&beans

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May 16, 2010
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I know this isn't helpful to the OP, but the only practical way to do Owner Financing is to make sure that you are always ahead of what you would have got if you had rented the property. So the buyer pays for example the equivalent of a year's rent in deposit. That way, if they don't keep the repayments then you haven't lost any more than you would if they had rented. Easy to be wise later on.


Excellent.....

From a sellers point.....

Of course, when dealing with an unscrupulous buyer??....(RENTER) who probably planned that and took advantage of the seller to get free rent...


And there would be no way of knowing in advance how bad you're gonna get screwed.....


Makes sense from a math standpoint......




And would ward off that kind phony buyer behavior......


But I agree.....protect yourself....


Did not dislike that post.....

Trigger happy....
 
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