Contract signed by all parties and notarized. They fell behind three months and that was agreement...no payment for three months and they in default.
Banking Law Attorney
This is going to be difficult to discuss without more transaction specific details. I think it would be a good idea to have a real estate lawyer in your area take a look at what you did with the contract you made up. You should be careful here, there are certain types of "owner financed" type real estate transactions that, if created (which can happen unintentionally) in Texas, can very risky for the seller due to statutory penalties associated with failure to perform certain duties within the transaction. You always have to be aware that If your buyers are pushed into a corner, they may push back... if you've got an exposure it can go sideways quickly. Get some solid advice before proceeding.
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What you can do will be dictated by what the contract states.
If it is a mortgage, you may foreclose.
If it is not a mortgage, then you would have to sue for breach of contract.
I am not a TX attorney, laws vary from state to state, therefore you should always consult a local attorney.
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You really need to hire an attorney. Owner finance deals on residential property are tricky these days. You have the Federal SAFE Act, Texas SAFE Act, and Dodd-Frank with which to contend.
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2 lawyers agree
Oil / Gas Attorney
The other attorneys are correct, it is more difficult than ever to have an owner financed transaction without involving a residential mortgage loan originator and a title company. The penalties for not doing the transaction right are almost always borne unto the sellers in the transaction. You will need to go see a real estate attorney to review your documents and determine your rights.
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