Expert: Matt Heisler - 1/8/2011

Question
I sold my house to a couple, they are paying a monthly payment to me. They are not keeping the house in good shape, I did a walk through ,the floor in the kitchen is in bad need of repair, wall paper in living room is torn, carpets are beyond cleaning. What can I do? Their payment is due on the first of the month, after the 10th he is to pay an extra twenty dollars, he has until the 30th to make payment ,if not he has defaulted on contract. He never makes a payment until the 20th, It has been as late as 11:35 pm on the 20th when he has made payment. What can I do?

Answer
Hello Rosie.

Did you sell it or rent it?  

If you sold it to them, and they are paying a payment to you, then it sounds to me like you have a mortgage on the property.  Did they sign a note?  Did they sign a mortgage?  If you had a standard mortgage, and they aren't paying it, you can foreclose if they violate the terms of the mortgage.  If you have a hidden mortgage, then you have been very foolish, and probably are not well protected.  A home is a significant asset, not to be handed over with a minimum of paperwork.  Based on the very limited amount of information in your question, it sounds like you have sold a house to people who aren't taking care of it.  So what?  It's not your house anymore.  It's THEIR house, and they have a right to do just about whatever they want in it. Put another way, if you sold your car to someone else, and they drive off the property and wreck it in an accident, it's not your problem, it's the new owners. So why would you care? Also, it sounds like they aren't in default until the 30th, and they pay on the 20th.  That means they aren't in default, and you have no recourse (which means you can do nothing) based on payment history.

If you are renting it, again, I need details of your contract to answer the question.  Most states require statutory notices to evict tenants who are late on payments, but based on your question, your folks are not late to the point of default, so again it looks like you have no recourse.  

I think you need to get clear on your situation.  You need an attorney to review whatever paperwork you have to determine your rights and the rights of the tenants/mortgagees.

Matt Heisler