Posted by Jim[Alaska] on February 15, 2000 at 16:41:04:
n/t
Who gets the house? - Posted by Jim[Alaska]
Posted by Jim[Alaska] on February 14, 2000 at 23:57:54:
I am unclear about the process of taking back a house that you have owner financed.
If I sell a house that I bought on an owner finance and the new buyer defaults who gets the house and how do you recoup your money? This is assuming that the original owner got the first mortgage and when you sold it, you got a second for the down payment and the loan mortage is assumable. I understand that you can forclose on your second, but what if the original owner forcloses? I would think that if he sells it for the original amount, you would be out downpayment money on your second. What am I missing here?
Jim
Re: Who gets the house? - Posted by JoeB(Atlanta)
Posted by JoeB(Atlanta) on February 15, 2000 at 07:18:41:
Hi Jim, I got a little confused in your explanation, but I think this will answer your questions.
When the 1st forecloses, your 2nd will be wiped out–unless you takeover the 1st. If you do this, don’t wait til foreclosure auction, negotiate in advance w/the 1st (if you want to takeover and get the house back).
If the payments are not being made on your 2nd (or if you had cross-default language in your note/mortgage saying that if the 1st is in default so is the 2nd), then you can foreclose your 2nd and takeover the 1st and get the house back.
Or, you can skip all this stuff, lose the balance of your 2nd and NOT get the house back…all up to you.
Best of luck,
Joe Brillante