Wondering why you didn’t get your lawyer to send a ‘cease and desist’ letter to the neighbor when you were trying to sell it, and then why the same lawyer didn’t start foreclosure when the payments started coming in late?
I’d say get a competent real estate attorney to handle the situation. Maybe a letter (that the attorney can compose) on legal letterhead might be all it takes. Did you check to find out whether the first is current?
If the first is current I’d call the payor, sit down over a cup of coffee and hash out something that works for both of you- maybe higher interest rate, add the unpaid balance to the back end of the note and temporarily lower the monthly so he can deal with whatever is making him late.
We forget sometimes that first time homebuyers are often overwhelmed by the costs of home ownership in the first year, if you’re lucky that’s all this guy is dealing with. It’s critical that you train this late payor before he trains you.
I am a rehabber, had a house I was selling, long story short the neighbor was inhibiting any possible sale. He was on disibility and nothing better to do but run out and attack any buyer telling them the house needed 20k worth of work, that you can’t trust these owner finance places, they say no closing costs but then when you get to the table it’s another story. I had no idea who this guy was, never met him before. Our lawyer contacted him, and actually asked “is he special”, guys an idiot. So we sold the house to our last resort buyer and took a second because his credit was awful. 6 months later he’s made 2 payments. So does anyone have a semi-threatening nasty letter I can send?
Anne’s comments are right on. I do not give a grace period on payments; I expect them in my hand on the due date. I never send reminder letters; instead, I knock on the door. If that doesn’t work I give a pay or quit notice. As a result, it is extremely rare for me to have a tardy tenant, even though now all my rentals are mobile homes. Think of it as paper training a new puppy. Be consistent & vigilante. Yes, I am nice, but I am THERE. I also reward 3 day early payments w/a $5 Wal-Mart gift certificate. I use a combination of positive & negative reinforcement, which has worked for 26 years. Now if I could only train my offspring–