Posted on: 07th Apr, 2010 09:34 pm
We were selling our land and home to the buyers who signed a 2 year contract with a balloon note. After the 2 years was up, they were supposed to pay all monies due, in other words, we were giving them 2 years to clean their credit up and get it refinanced into their name. This would pay off our lien holders in full and release all rights to the buyers. They failed to do so after the 2 years and now they have quit paying the note. What do I need to do? Can I treat them as renters now and give them a 3 day vacate, then file eviction? The contract expired July 2009. They continued paying for several months but have quit paying now.
I hope you've signed a contract with them which mentions the terms and conditions. You will be able to take actions against them as per the contract. As far as I can understand, as they are not fulfilling the contract, you can give them a 3 days notice to vacate the property.
Yes, the contract clearly states that the entire principal balance of the note, plus accured interest, shall be due and payable on maturity date of July 31, 2009. They continued paying on time so we didn't pursue anything until now because they have quit paying and show no intentions of paying. I have heard that since they did not get refinanced then that reverted them to renters now and we can evict them instead of having to foreclose. I am trying to find somewhere that states this.
We signed a Warranty Deed with wrap provisions. I think if we would have done a Contract for Deed we could easily just start the eviction process but I think with Warranty Deed we have to foreclose.
I would suggest you to have a word with an attorney and take his opinion in this regard. He will be the best person to suggest you what steps you can take in order to evict the renters.