I owner finance a condo to a buyer. The buyer paid money as a down paymt. That was a little over a year ago. Now, he had some problems with the a/c and called to fix it.So , I told him that in the contract says that he needs to take care of it. He got mad and left the property. But, before doing it he damaged the property, didn't pay last 2 months of HOA, neither the last 2 bills of energy. Now, he does not want to pay anything else and just moved. So, my question is. How do I make him pay the pending bills? What is the process to have my property back? Do I have to follow any legal step? I never transfer the deed to his name because it was a Contract of Deed. Now, the management is contacting me to pay the pending bills. I told them I don't have to do it since the owner wasn't me. Actually, the buyer didn't sign any termination of contract. So, who is responsible for the bills, and what do I do to terminate the contract and have the condo back?

ScottGem

Was this a contract for sale or did you give him a mortgage? Was the property deeded to him or did you maintain title?

If you uses a contract for deed and maintained title, you have to send him notice that he is in breach of contract and that you are voiding the contract and retaking possession. You then sue him for the damages and unpaid fees.

If you took back a mortgage, then the property is in his name and you have foreclose. In that case you can sue him for the full amount of the promissory note. However, if you resell, then you need to deduct what you received in the resale agains the balance of the note.

sergio2009

The condo is still under my name. But, I don't know where he moved. So, I don't have an address to send him the notice that he is on breach of contract. What happens with the electric bill and HOA? I pay for them and then sue him? Can management sue him instead of me?

ScottGem

Yes you have to pay and then sue him. You are the owner the HOA is going to sue you, not him. You send the notice to the last known address.

But let me get this straight, you entered into a contract for sale of your property and you didn't do a background check? You didn't verify employment or income?

sergio2009

I did. But, seems that this person just moved some where. So, I have to find him now.

ScottGem

So you are saying you got a background check, know where this guy was working, but he just up and moved, left his job etc. Because you told him it was his responsibility to fix the A/C?? Something doesn't sound right.

excon

Hello s:

You pay the back HOA fees and fines, fix the broken stuff, bring the mortgage up to date, and rent it or sell it again. If you can find the other guy, sue him. But, I wouldn't waste my time looking.

excon

PS> If you sell it again, have a lawyer draw up your contract.