Installment sale (by Jimmy [PA]) Oct 9, 2017 12:45 PM
Installment sale (by Pmh [TX]) Oct 9, 2017 2:43 PM
Installment sale (by Ed [PA]) Oct 9, 2017 4:25 PM
Installment sale (by Lynda [TX]) Oct 9, 2017 6:46 PM
Installment sale (by Nicole [PA]) Oct 10, 2017 4:54 AM
Installment sale (by S i d [MO]) Oct 10, 2017 5:04 AM
Installment sale (by NC INVESTOR [NC]) Oct 10, 2017 2:18 PM
Installment sale (by Nicole [PA]) Oct 10, 2017 2:47 PM
Installment sale (by NC INVESTOR [NC]) Oct 10, 2017 4:13 PM
Installment sale (by Nicole [PA]) Oct 10, 2017 5:25 PM
Installment sale (by NC INVESTOR [NC]) Oct 10, 2017 6:30 PM
Installment sale (by NC INVESTOR [NC]) Oct 10, 2017 6:30 PM
Installment sale (by Jimmy [PA]) Posted on: Oct 9, 2017 12:45 PM Message:
Hi All, I would like your opinions what should I do in this situation. Thanks in Advance.
I sold my investment property as an installment sale for $40,000. This property is in a low income area. The buyer put down 50% which is $20,000. The other $20,000, the buyer pay $700 a month untill it pay off. Buyer has been paying $700/month for about a year already.
Now the buyer stop paying for 4 months now, I have been giving the letter to the buyer demand payment or legal action would proceed. On the 2nd month that buyer didn't pay, I have try to stop by the property and talk to the buyer. The buyer told me that she lost her job and recent shooting in the block. Then She told me that she would pay next month. A few days later, I got a text message for the buyer that she works two jobs and will pay and catch up with payment. But the buyer has not pay for the 3rd month and now 4th month.
I think that buyer work under the table and try to get any help with any government programm that she can get after she gets eviction or foreclose letters.
I have talked to the lawyer. The Lawyer told me that I can file for small claim court for non-payment ( lawyer charge $300 ) or foreclosure process ( initial charge $2000 ). For Foreclosure, Lawyer told me that buyer will get her Lawyer to get some money from her $20,000 down payment back.
For small claim court after winning and the buyer still doesn't pay, what should I do?
For foreclosure process, How long it take? About how much it cost (Any ideas)?
Another opion is that I try to talk to the buyer and work thing out between me and the buyer. This option is hard because I don't want the property back and the buyer try to avoid me, doesn't want to text or talk to me. Thanks --172.58.xxx.xxx |
Installment sale (by Pmh [TX]) Posted on: Oct 9, 2017 2:43 PM Message:
quit wasting your time posting here & pay your lawyer. good luck, --166.137.xxx.xx |
Installment sale (by Ed [PA]) Posted on: Oct 9, 2017 4:25 PM Message:
Consult another lawyer. Normally if you have an installment sale you cannot evict, you have to go through foreclosure. And the buyer does not get any of the money back. --96.236.xxx.xxx |
Installment sale (by Lynda [TX]) Posted on: Oct 9, 2017 6:46 PM Message:
Yes, you need a new lawyer--one that specializes in real estate sales problems in your state. A regular eviction lawyer may be good specifically in evictions rules/regs but his advice to you on installment contract may be lacking.
Another thing you might do is find out where she is working now. I am not usually one to undercut someone who is trying to recover, especially anyone who is willing to work at 2 jobs to do it. But maybe the threat to garnish those wages may work.
Also you could write/sign a new contract for the remaining amount at $500/mo and just increase the time till all is repaid. Maybe she can handle $500/mo easier and be willing to pay longer. Have your new lawyer propose that to her. --108.87.xx.xxx |
Installment sale (by Nicole [PA]) Posted on: Oct 10, 2017 4:54 AM Message:
...For small claim court after winning and the buyer still doesn't pay, what should I do?...
interesting theory but won't accomplish the goal of getting your property back and her out. she won't pay after small claims or she'd pay now. what you would do afterwards? file the foreclosure documents.
...For foreclosure process, How long it take? About how much it cost (Any ideas)? ...
it takes as long as she wants it to. not sure but probably 4 to 6 months if she does nothing. As long as she wants it to drag out should she "play the game". Cost is probably $5000ish ... unless she drags it out and then who knows as your lawyer would need to follow through on all her motions and eventual bankruptcy.
She can't pay and she can't catch up. You can't evict. I see several options since you don't want the property ...
1. list it for sale now with her cooperation and figure out how to split the proceeds ... assuming there are any.
2. cash for keys and then you sell the property.
3. drag it out through foreclosure and then sell the property.
4. tack on five payments to the end of the term and have her start next week with weekly payments for the remainder of the term.
--72.95.xx.xxx |
Installment sale (by S i d [MO]) Posted on: Oct 10, 2017 5:04 AM Message:
Jimmy, this is one reason why I DON'T do installment sales. The folks on this forum who do them will tell you the facts: 95% of buyers fail to follow thru. So when they fail, you should not be surprised at all but simply need to take the steps to get your property back and (maybe) start the whole process over again.
For this one, get a foreclosure attorney and proceed. She SAID she'd pay. She didn't. She's part of the 95% failure rate. The longer you wait, the more loss you take. Get it done now. I agree with Pmh...you're wasting time thinking she'll get caught up. For that reason, I would not try to modify the payment amount. If you modify the payment terms that opens up a whole new can of worms that can bite you in the butt down the road when you do end up foreclosing.
What would be the reason she gets part of her $20,000 down payment back? She agreed to purchase: she failed to complete the deal. Perhaps your state requires to give her back any proceeds from the sale of the property above the amount to pay off the balance of what is due.
In the future, if you want to keep doing these kinds of sales, do a lease with option to purchase. Then all you have to do is evict....no foreclosure. Cheaper, faster, cleaner for everyone. The down payment becomes the option contract payment. The monthly payment becomes rent. The Buyer gets no equity, and therefore there's no money to claw back when they fail.
Notice how I keep saying WHEN they fail. 95% failure rate: it's a known fact that they will fail. I'm not comfy doing deals when the odds are so far stacked against the other party. --173.19.xx.xxx |
Installment sale (by NC INVESTOR [NC]) Posted on: Oct 10, 2017 2:18 PM Message:
I had to foreclose on a property after selling it to someone doing a 1031 exchange. The buyer was good for a about 2 years and then it fell apart. The foreclosure took about 6 months and it cost about $4,200 with 2 attorney's working on it. By NC law we had to offer the property at auction. However, we did have the ability to set the price to recoup the outstanding balance so that no one else would consider buying it.
As for lease option, in our state that still requires foreclosure as the court's view the the option as equivalent to a sale. It may well be different in other states. --75.181.xxx.xx |
Installment sale (by Nicole [PA]) Posted on: Oct 10, 2017 2:47 PM Message:
...do a lease with option to purchase. Then all you have to do is evict...
not here. if you file for eviction and the tenant doesn't show up, you can probably skate by. If the tenant shows up and mentions that option to purchase, the magistrate will dismiss as they consider that an "equity interest" in the property ... which means foreclosure. --72.95.xx.xxx |
Installment sale (by NC INVESTOR [NC]) Posted on: Oct 10, 2017 4:13 PM Message:
Nicole:
Doesn't small claims for eviction in PA require a copy of the lease? If yes, then it would / should clearly show an option so even if the tenant doesn't show up I think they'll lose on eviction and need to foreclose. --75.181.xxx.xx |
Installment sale (by Nicole [PA]) Posted on: Oct 10, 2017 5:25 PM Message:
NC - I have never had to show my lease. Have never had to show any documentation at all except one time a retired magistrate was filling in and wanted to know how I came up with my figures .... tenant and I both pulled out our notebook paper and said we agreed on the amount ... he didn't even look at it.
Magistrate asks me if I have a written lease and I say yes. She asks if the rent is paid and I say no. She asks for total amount and I tell her. She asks tenants if there is a written lease and they say yes. She asks if rent is paid and they say no. She asks if they know the amount and they have the same paper I gave them a day or two before the complaint is filed so they give the same amount I do. Magistrate rules in my favor, tells them they have 10 days to pay or else and out the door we go. Hearings are scheduled every 5 minutes on landlord tenant day. Every so often the tenant will ask a question or go on a little rant. she allows them to speak and again, ruling in y favor and out the door we go.
if you have a lease option and your tenant doesn't show up, the magistrate won't know about it unless the landlord tells her... and that would be kind of dumb and defeat landlord's purpose of trying to evict. What remedies the tenant would have if they went to legal aide lawyer down the road I've got no idea.
--72.95.xx.xxx |
Installment sale (by NC INVESTOR [NC]) Posted on: Oct 10, 2017 6:30 PM Message:
In my area the first thing they want to see is the
lease. It's standard procedure here. --75.181.xxx.xx |
Installment sale (by NC INVESTOR [NC]) Posted on: Oct 10, 2017 6:30 PM Message:
In my area the first thing they want to see is the
lease. It's standard procedure here. --75.181.xxx.xx |
Reply:
|
|