If you would like the names of a few good attorneys in the area let me know.
IMO Owner financing is good for the seller and buyer. It should be setup as a land sale with escrow for taxes, insurance, HOA etc. to protect the seller, not the case here. Setting up in this way the buyer could never get a loan (not on title) and if buyer defaults seller would be notified ASAP not 1.5 years later.
Seller gets a little money now (down payment), cash flow, then in 5-7 yrs balloon payment. This eases the tax burdened, net more money for the property and provides income.
For the buyer they get a house without the rigors of qualifying for underwriting until established credit is built.
If anything goes wrong seller forecloses and finds another buyer to do it all over again.
Did you use a Real Estate Attorney to draw up a contract to sell this home and did the contract include the HOA's fees associated with this home and any plan b options if the contract went sideways?
I'm curious, because I get asked so many times by buyers and sellers about an Owner Carried Contract. Whether or not this is a good thing to do. I always advise for a Real Estate Attorney to handle the transaction and or questions.
I know there can be so many legal consequences if your deal goes sideways, such as yours.
Sounds like you need legal advice from a Real Estate Attorney. I wish you the best.
Please keep us informed about your outcome. Your transaction can help educate the public about the possibilities of these outcomes.
The question involves legal issues, which licensed Realtors would be considered "outside our scope" of knowledge. We do not practice law, and are not licensed. Because this sounds like a "breach of contract" issue, your best bet -- and perhaps only option -- is to speak to a real estate attorney.
The Oregon State Bar has a very good REFERRAL program. If you contact them, they can give you the name and contact information of someone. The consult can be as low as $35 . . . worth it!!
Carla Muss-Jacobs, Principal Broker/Owner
EBA Portland, LLC
Exclusive Buyers' Agent
Assisting Buyers in Metro Portland since 1999
You never let the buyer have the deed until the financing is satisfied (do a land sale contract). That way they cannot get a loan. Taxes and HOA will always be a problem without an escrow setup to pay them. A small cost for big benefit and peace of mind.
Property taxes create a lien against the property, not the individual, so you will likely get stuck with that bill. Likewise, an HOA will have a hard time taking action against your "buyer" if that person is out of the picture, but the fees don't go away just because he's gone. The fees run with the property.
I should, of course, point out that I'm not a lawyer, and there undoubtedly are important details of your situation that I don't know. Besides, a good lawyer will know all the exceptions to the rules, and may be able to offer alternatives that could change the outcome in your favor.
Broker, Licensed in Oregon
Keller Williams Realty Professionals