Owner Finance

I have a piece of property I have owner financed to a person whom stays behind on their payments. They continue to stay 30, 60, and 90 days behind at a time. When they hit 90 days we send a letter giving 10 days to get current or we take back rights to the property. They always end up paying on the 9th or 10th day. Last month they were 90 + days behind and payed on the very last day. This month they are behind again! How can I stop this? Is their a way I can make them seek alternate financing or get the property back if they continue to stay behind?

Do you have any written agreement?

yes, we have a written contract. it states the price, payments, land details, etc. the only clause we have about late payments is that a late fee will be added for payments over 10 days.

You can sue them in small claims for the fee whenever they are late...if they materially default and break the agreement you can deem it breached and end the agreement. WLD could likely intervene as well if need be for a minor fee.

[ownerfinancedloans]

Thank you for sharing useful information with you. This forum very useful to you regarding your doubts. When part or the entire purchase price, less the buyer's down payment is carried by the seller, the seller is providing owner financing. It doesn't matter if the property has an existing loan, except to the extent that the existing lender might accelerate the loan upon sale due to an alienation clause. Instead of going to the bank, the buyer gives a financing instrument to the seller as evidence of the loan and makes payments to the seller.


[http://ownerfinancedloans.com]