Credit Card Center Advertiser Disclosure

New Visitor
Posts: 1
Registered: ‎01-09-2008
0 Kudos

Odd situation with an Owner Financed Home

I am in an odd situation with a home i used to own in california and sold in 1990...
When my (now ex) wife and i sold the home we financed 30% of the purchase price and they paid 35% on a first mortgage (all they could qualify for if i recall right) and 35% cash..The total was something like $250,000 in total... (so basicly $75000/$87500/$87500).. In that agreement they would pay the balance off to us in 10 years and would pay intrest payments @ 8% on that ... I dont recall what the payments where supposed to be now but it wasn't a heck of alot... There attorney set it up and at the time we where tickled to make a large profit on the house (we moved to south florida and only had to get a small mortgage)..Anyway, life happend and hurricane andrew forced us to move to charlotte nc... Some how in the proceeding months, we forgot about the mortgage in california and they did call and ask us what to do, we told them to hold off until we got settled and send us a lump sum at that time..Which never happend (very bad on our part and they never called us back because they lost track of us)...And we never payed any attention to it (don't ask why, life was hell at that point)... Well after a divorce, mid life crisis, and rasing 3 kids  through college, it was all but forgotten about... About a month ago i got a call from an attorney in san diego and it all came back to me ..I know its not normal, but i am very forgetful... Long story short, the house has some kind of either tax lien or something against it and i still have this mortgage against it (which is the bigger claim or ?because its $75000+8% intrest yearly)...The owners who bought it long ago want me to forclouse against it and lease the house back to them... Since i had some how let this go so long ago, should i just tell them to forget it or should i proceed with an attorney? This is very bizzare and i am mad i forgot about this long ago (even though i paid taxes on the full amount from 1990-1993)..Any help is greatfully apprciated...
Super Contributor
Posts: 8,706
Registered: ‎09-28-2007
0 Kudos

Re: Odd situation with an Owner Financed Home

Well if it was me I'd get an attorney, there looks to be some sort of profit you can make out of it which could be much greater than the attorneys fees you'd be charged.  Honestly it's going to be tough for you to get advice from layman's because any advice that would be given to you would be legal advice, and unfortunately one could be sued for giving you legal advice that turns out to be damaging.  I'd look up real estate attorney's in the city/county that the home is in, perhaps first with the title company's legal department that issued the title insurance for a good recommendation, or see if they have any input on it.
Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Valued Contributor
Posts: 2,385
Registered: ‎09-10-2007
0 Kudos

Re: Odd situation with an Owner Financed Home

Foreclose - kick them out and lease it at market or sell it.  Be careful of the tax lien - that trumps the mortgage - so I would definately hire an attorney and be prepared to clear the tax lien.
Now a member of the UNOFFICIAL 700 Club - Plus scores of 734-734-747

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.