QUESTION
Can I foreclose the house I sold if the down payment was not paid in full?
Asked on Nov 12th, 2013 on Foreclosures - California
More details to this question:
Sold a home where I hold the mortgage. Buyers were given two months to have down payment paid in full. Now 4 months have gone by. I haven't charged any late fees. I have asked for the remainder of payment. The buyers keep telling me they're working on it. I’m not sure if I should or can foreclose
3 ANSWERS
It depends on the language of the promissory note and deed of trust, but generally you could foreclose. A missed down payment would be treated exactly like a missed monthly payment, entitling you to exercise all of your remedies including acceleration of all payments and foreclosure.
Answered on Nov 25th, 2013 at 12:06 PM
1 Award
It depends on whether the mortgage specified that it was securing payment of the full purchase price including the down payment, or only the balance due after the down payment. If the latter, your best bet may be to sue the owner in small claims court for the down payment. But before doing that, you should consult with a qualified real estate attorney in your area. The consult should cost no more than $500.
Answered on Nov 14th, 2013 at 7:52 AM