Posted by Paul_MA on January 22, 2001 at 17:45:20:
Alan,
First, you didn’t say how she bought the property from you. Was it seller financing? L/O?
Anyway, concerning the second, here’s a couple of idea’s:
Let her make payments on the note to you. Structure a new note with payments she can afford. Better to get something than nothing. Work with the buyer.
Maybe she can’t financing CONVENTIONALLY. Money is available to those with less than perfect credit. Call some mortgage brokers or subprime direct lenders. You can find a lender for her.
If the 1st mortgage IS seller financing, structure a new note covering all of the sale price including your 6k (minus the down payment) and sell the note for cash to you.
I sold a house in 1999 to a lady (my rental tenant who had decent credit) for $94k. House is now worth about $106k. To help her out, I took back a note for $6k, with the whole note (including payments) not due until September 2000, when she was going to refinance and pay me back. Well, her credit has slipped and she can’t get the 90% loan! I’m trying to get her to look at all her options, but I’m now wondering what (if any) options may be available to me. Should I try to foreclose (will that actually gain me anything?)? Or see if the lender will let me take over payments and have her rent from me again? I obviously don’t want to take a route that’s going to cost a lot, but I don’t want to lose over $6k either! Any suggestions?