Expert: Sharon Wilkerson - 2/8/2008

Question
I am selling a lot to an individual, that I financed.  The
buyer made a down payment and a number of monthly payments.
The buyer has stopped making monthly payments and owes a
number of monthly payments, to complete our contract.

I have told him I would cancel our contract, if he did not
complete the payments.  The buyers lawyer said his client
has a "vested interest" and I can not just cancel the contract.

The buyers lawyer said the buyer would agree to a new pay
schedule.  I sent an agreement to the buyer with the new
pay schedule.  The buyer did not respond and has not paid
according to the pay schedule, that his attorney said he
would pay by.

Can I sell this lot to someone else?

Answer
First off, I am a real estate agent not a real estate attorney, and I believe that is just what you need as the wording of the original contract to sell is all important here.  I am not an attorney, however, I believe that South Carolina law will not allow you just to sell the property to someone else. Instead, it will require you to go through foreclosure proceedings. In South Carolina, a lender may foreclose on a mortgage in default by using the judicial foreclosure process, and I think this is true of seller financed loans as well.

The judicial foreclosure process is one in which the lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin. Generally, if the court finds the borrower in default, they will give them a set period of time to pay the delinquent amount, plus costs. If the borrower does not pay within the set period of time, the court will then order the property to be sold.

In summary, DO NOT sell the property yourself. Hire a good real estate attorney, and you should be fine.