Thursday, May 8, 2014

If I sold a house and did an owner finance agreement with the buyer, what happens if I have to repo it?


I sold a house 15 years ago in the state of Texas. Some things have happened and it looks like I'm going to be forced to repossess the house. I'm in the process of getting a lawyer. I now live on the other side of the country so it's going to take some time. My question is, I know how bank foreclosures work where you auction off the property and pay the mortgage off plus any other lien holders. How would this work? There's no mortgage to pay off, there is one other lien holder but I have first place.

I'm having to repossess because they allowed their home owners insurance to laps. When I spoke to the company about it they said they would not reissue them a policy and that since they had committed insurance fraud nobody else will issue them a policy either. It's written in the contract they must have insurance or I can repossess. I'm not comfortable with my property not having insurance.

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