Posted on: 25th Apr, 2008 10:59 pm
I bought a property for $135,000 and then sold it for $179,000 with 12% seller financing. The buyer is in bankruptcy chapter 13 now (4 years after the sale) but they have not listed the secondary lien (seller finance) in the BK. I don’t want the 1st lender to foreclose on the property. But how do I go about satisfying the 1st lien and then foreclose on the second thereby regaining the title. The current property value is round $210,000.
hi kimberly,
welcome to the forum.
you have sold the property at 12% seller financing right? but there seems to have two mortgages. so you have financed a part of the mortgage. so can you please tell me the amount of the first mortgage and the amount of the second mortgage? how much do the buyer still owe to you still now?
please inform us so that i can give you right answers.
best of luck,
larry
welcome to the forum.
you have sold the property at 12% seller financing right? but there seems to have two mortgages. so you have financed a part of the mortgage. so can you please tell me the amount of the first mortgage and the amount of the second mortgage? how much do the buyer still owe to you still now?
please inform us so that i can give you right answers.
best of luck,
larry
you won't be able to foreclose due to the bankruptcy. are you getting payments at all?
what do you know about the bankruptcy filing? have you had any conversations with the bankruptcy trustee? have you had any conversations with the first mortgage lender? is your second lien valid? by that, i mean, has it been duly recorded?
you've got some work to do to find out some very important information.
what do you know about the bankruptcy filing? have you had any conversations with the bankruptcy trustee? have you had any conversations with the first mortgage lender? is your second lien valid? by that, i mean, has it been duly recorded?
you've got some work to do to find out some very important information.
Hi Kimberly,
What you can do is, have a talk with the first lender was to whether they'll allow a short sale on the property so that the first lien is removed. Whether or not there is any deficiency judgment to be paid, is what the first lender should be concerned about.
In case the first lender doesn't allow for short sale, you can have the property transferred to you sop that you have possession on it and can pay off the first lender to get the property free and clear, provided there aren't IRS liens, state tax liens, city assessments or ad valorem taxes.
Take Care
What you can do is, have a talk with the first lender was to whether they'll allow a short sale on the property so that the first lien is removed. Whether or not there is any deficiency judgment to be paid, is what the first lender should be concerned about.
In case the first lender doesn't allow for short sale, you can have the property transferred to you sop that you have possession on it and can pay off the first lender to get the property free and clear, provided there aren't IRS liens, state tax liens, city assessments or ad valorem taxes.
Take Care
I hold a 2nd on a Houston property. The homeowner makes payments on the first but over two years she has not paid any on the 2nd. I have sent a demand letter, then, 30 days later, a 2nd ltr demanding payment in full.
No response to either letter. What now? "r.seckler@comcast.net."
[Link deactivated as per forum rules. Thanks.]
No response to either letter. What now? "r.seckler@comcast.net."
[Link deactivated as per forum rules. Thanks.]
Hi Bob,
If you are a lender, then you will have the rights to foreclose upon the property. But as you are the second lender, if you foreclose the property, you will have to satisfy the loan of the first lender.
Thanks
If you are a lender, then you will have the rights to foreclose upon the property. But as you are the second lender, if you foreclose the property, you will have to satisfy the loan of the first lender.
Thanks
I hold a contract for deed on a property. The buyer is not consistant with payments. Never pays the late charges, went two months this year without paying, made payments in June, July, and 1/2 payment in August. Sept. is coming and says he has no money to pay. Do I need lawyer to send demand letter?
Hi Rosie,
It is totally your discretion whether or not you consult a lawyer. You can send the demand letter yourself and specify a time limit to clear the dues. If the buyer is unable to pay the dues, then you can take actions as specified in the agreement.
Thanks
It is totally your discretion whether or not you consult a lawyer. You can send the demand letter yourself and specify a time limit to clear the dues. If the buyer is unable to pay the dues, then you can take actions as specified in the agreement.
Thanks