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If you buy a house via owner finance or owner carry, and you can't pay do they go through eviction process or foreclosure? How would that work? We are buying a house this way, and with the economy the way it has been the house is no longer worth the 1800 a month payment, and we have discussed this with the owner and he has worked with us but then raises it back then down then up then recently wanted us to sign a rental lease and forfeit the owner carry. This would be a lower payment, but he wants us to be responsible for all maintenance and repairs to the house and everything in it. Right now we have not signed the lease and can't pay the house payment because we just spent 800 on fixing the air conditioner. He is threatening and I am not sure what our rights are and what the process would be. Any advise would be appreciated. We live in Arizona if that matters.
If you buy a house via owner finance or owner carry, and you can't pay do they go through eviction process or foreclosure? How would that work? We are buying a house this way, and with the economy the way it has been the house is no longer worth the 1800 a month payment, and we have discussed this with the owner and he has worked with us but then raises it back then down then up then recently wanted us to sign a rental lease and forfeit the owner carry. This would be a lower payment, but he wants us to be responsible for all maintenance and repairs to the house and everything in it. Right now we have not signed the lease and can't pay the house payment because we just spent 800 on fixing the air conditioner. He is threatening and I am not sure what our rights are and what the process would be. Any advise would be appreciated. We live in Arizona if that matters.
Thanks!
Read your purchase agreement and then contact an attorney.
I....you can't pay do they go through eviction process or foreclosure? ....recently wanted us to sign a rental lease and forfeit the owner carry.
This would be a lower payment, but he wants us to be responsible for all maintenance and repairs to the house and everything in it. Right now we have not signed the lease and can't pay the house payment because we just spent 800 on fixing the air conditioner. He is threatening and I am not sure what our rights are and what the process would be. Any advise would be appreciated. We live in Arizona if that matters.
Thanks!
Chuckity is right about checking your paperwork.
Your state is a Non Practicality state, where if your lender forcloses on you through the courts - they can pursue a deficiency judgment.
If they do not go through the court process, basically all they get is the house back.
If you are upside down on the value - this could delay them foreclosing on you, because it would cost them more then the property is worth.
I don't understand what you mean - wanted you to sign a rental lease? Do you have a mortgage?
I am re-starting this thread, not the op though..
We have a question / concern for legitimate finance & Real Estate professionals.
We own our home , however it was seller financed. He is a realtor & did not want us to use another realtor and we were carrying a mortgage on our home we were unable to sell ( 2010 market, very difficult, but had to relocate for job). So, we rented our home for a year, then owner decided he wanted to sell & this was the only way we could do it because we were still paying for our home in the state we moved from.
We did not want to lose this house, our children were settled in school & we were comfortable in our new neighborhood, so, we agreed to purchase home using seller finance.
It took us 22 months to sell our home & we fell a little behind on some bills, never our mortgage or car payments...
We purchased this home, w/ lawyers attending closing, the deed is in our name.
Part of the contract was we would re-finance in 3-5 years. No problem, so we thought.
Now, 3 yrs later, the previous owner ( who quite frankly, even though the deed is in our names, I feel like he is a landlord!) is now saying we HAVE to refinance now or he will threaten foreclosure??
We are stunned and extremely nervous as we don't really understand how he can do this legally?
Isn't foreclosure done when payments aren't made? We have NEVER missed a payment and are beginning the refinancing process, but because of some of the credit "glitches" due to falling a little behind while paying for 2 homes, it is taking longer than we expected.
How can he threaten this when we have never missed a payment ?
We are just beyond shocked and never saw this coming!
We are responsible adults who are settled in our area and we work, volunteer & are very active in our children's' schools. We are embarrassed at the same time that we may have to leave this house & not truly understanding why?
Please, this is a heartbreaking situation that has been causing enormous amounts of stress for us & we would appreciate whatever judgements people have to be kept to themselves. We are looking for legitimate postings from Real Estate professionals or anyone w/ a similar experience.
Again, check your contract. Specifically look at the paragraphs that are related to refinancing and time frames for doing so. Is it possible that something in the contract indicates the previous owner of the house can "demand" payment? What does that paragraph say about who is allowed to decide when refinancing is done?
Typically foreclosure is used for non-payment, but it can be used when other terms of the contract are breached.
I am re-starting this thread, not the op though..
We have a question / concern for legitimate finance & Real Estate professionals.
We own our home , however it was seller financed. He is a realtor & did not want us to use another realtor and we were carrying a mortgage on our home we were unable to sell ( 2010 market, very difficult, but had to relocate for job). So, we rented our home for a year, then owner decided he wanted to sell & this was the only way we could do it because we were still paying for our home in the state we moved from.
We did not want to lose this house, our children were settled in school & we were comfortable in our new neighborhood, so, we agreed to purchase home using seller finance.
It took us 22 months to sell our home & we fell a little behind on some bills, never our mortgage or car payments...
We purchased this home, w/ lawyers attending closing, the deed is in our name.
Part of the contract was we would re-finance in 3-5 years. No problem, so we thought.
Now, 3 yrs later, the previous owner ( who quite frankly, even though the deed is in our names, I feel like he is a landlord!) is now saying we HAVE to refinance now or he will threaten foreclosure??
We are stunned and extremely nervous as we don't really understand how he can do this legally?
Isn't foreclosure done when payments aren't made? We have NEVER missed a payment and are beginning the refinancing process, but because of some of the credit "glitches" due to falling a little behind while paying for 2 homes, it is taking longer than we expected.
How can he threaten this when we have never missed a payment ?
We are just beyond shocked and never saw this coming!
We are responsible adults who are settled in our area and we work, volunteer & are very active in our children's' schools. We are embarrassed at the same time that we may have to leave this house & not truly understanding why?
Please, this is a heartbreaking situation that has been causing enormous amounts of stress for us & we would appreciate whatever judgements people have to be kept to themselves. We are looking for legitimate postings from Real Estate professionals or anyone w/ a similar experience.
Sounds like you had a balloon payment due at the end of three or five years. At that time, you would refinance and the original seller would get the money due on the note. If that didn't happen, then I think you have a problem.
Part of the contract was we would re-finance in 3-5 years. No problem, so we thought.
Your post is over two months old...so what have you found out from your attorney? As always, it depends upon what your contract says. If a balloon payment is due at 3 years, you'd be in breach of contract and he could start foreclosure proceedings.
If you still haven't gotten an attorney to look into this, do that ASAP.
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