Expert: Dick Dennis - 6/7/2006

Question
I am live in Florida. I know that the risk is high. The people buying my home have been my renters for about a year. Although they have made payments well they have not been very clean.....I would rather get out of the headache than have to kick them out and then have to clean up the house. Any suggestions on an attorney or things that I need in a contract? Thank you so much for all of your help. I just need out of the nightmare.
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Followup To

Question -
I am in the process of selling my home. The person buying my home can only get an 80% loan and has little money to take to the table. I am considering holding a second mortgage for the 20%. The buyer will sign the deed over to me at closing. My question is what are my rights as far as evicting if payments are not made? How does that process work and what are the risk or downfalls of holding a second mortgage? If they dont make payment can I evict them and sell the house? What happens with my loan and the mortgage company loan? Who gets paid first? Thank you!

Answer -
Since you did not tell me in what state you are located, I can only talk in generalities. Be aware that with the buyer having 0% equity, the odds of a foreclosure is very high. That's why banks or second mortgage lenders charge an extra high interest rate.

By the way, I strong suggest you do the same . . . unless you are more desperate to sell than the buyer is in buying. But be prepared to have to foreclose.

There is a period of time (again, not knowing your state) that you file a notice of default and then you have to wait until the buyer has a period of redemption which can be anywhere from five days to a year, depending on the state.

I strongly suggest you talk to a real estate attorney to better understand the foreclosure process in your state. Also, you are IN SECOND POSITION for payment from any equity in the foreclosure sale.

Gee, Debra, there is so much more you need to know what to do in advance so that you having to foreclose is minimized.

If you will send me additional info, I might be able to help. I do wish you well.

Dick Dennis          dixiedee13@aol.com

Answer
If you think you have problems now with those tenants, just wait until they leave the property after foreclosure and YOU have to repossess the property.

Bite the bullet and evict those tenants. Being a landlord is being in business. If you're not willing to accept the responsibilities of being a landlord, then sell the property to someone who already has a number of rentals. That person knows what to do with it, he/she'll buy it at discount and you won't have to worry about the condition of the property.

I'm just trying to save you from having problems in the future, Deb. Get a REAL ESTATE attorney to put the transaction together for you if you should decide to continue to sell the house to your tenants. I wish you well.

Dick Dennis          dixiedee13@aol.com