Posted by George P. on 4/1/2004, 12:54 pm, in reply to "Contract of Sale" 1/talk to them about the situation, if they can get money elsewhere or how to intent to handle it. It doesn't matter about their hardship, if they lived anywhere else, they would have to pay or be thrown out. One way or another, they either pay or they go. 2/ Send them a letter about breach of contract and intent to foreclose if not cured in 30 days. That is the first thing to do on the 6th of the month, if you don't get a payment. 3/If nothing works, record the deed to you in the court house, that will transfer the ownership back to you. 4/ go to court and evict them as tenants. If they don't go, get the sheriff, marshall or who ever handles it in your area and throw them out. 5/ it is easier to create an amicable solution instead fighting. 6/run ads to resell the house and use the money from the future down payment to pay all late payments and fees. But don't let the "now owners" get off the hook and not pay. You want a note signed and witnessed that they owe you money and when they are going to pay. 7/if you are late with payments, contact the bank and tell them when you'll pay in 30,60 days - don't ignore them. They don't care who owns the house or if there is a contract for sale. They want to know when they will get their money. That's all they are interested in. If some clerical tells you some BS, don't worry about it. 8/Now you have the potential to make more money, increase the sales price, possibly interest and get a good down payment. You see, my system creates more money if things go wrong. Of course if they are still in the house and you get a new buyer, disclose everything. Work out a deal, that it is OK to show the house. 9/Go to my web site, I describe on the first page how I handled the same problem. They do have a remedy, which is very costly. They could sue, file an injunction, post a bond etc. But the question is - if they really have no money to pay the house payment, where are they going to get $5000 to start a law suit? If that should happen /I doubt that/, the first thing you tell the judge that something is fishy - they cannot pay house payment but they can hire a lawyer and sue. No lawyer-friend will do it for free. There are costs involved and yes, the lawyer would do it for free if he can get the house for free. Once the lawyer sees your contract and underlying mortgage There is no need to get stressed out, because you'll make more money. In the future, always be careful about your buyers, their jobs and ability to pay. I talk about it in my MREM's. You should get the Mister Real Estate Monthly's -- I don't think you did. Don't rush to sell the house just to any buyer, be very picky. Always try first to be nice but tough. After that comes the nasty part - court, sheriff, eviction. Tell them, if they resolve the problem in an acceptable way, you won't report the foreclosure or the lates on their credit report. That usually works the best - at least it did for me. Tell them, it could stay 11 years on their credit report. They don't know the difference, I think. But handle it immediately. What would you do without me? I had nobody to ask how to resolve problems or what to do!!! I had to find all solutions myself. Lastly, if you worked 100% my program, then you don't have to worry, you shouldn't have any of your money in the deal. If you do, then you made a mistake. And of course, if you have none of your money in it and you already made good money from it, you simply walk away. I don't suggest that because you have some pricey real estate that belongs to you, George P.
Message modified by board administrator 4/1/2004, 2:05 pm
There are few steps to take first.
he'll try to be out of the picture.
so first recover your real estate and make more money from it.
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