Sellers,After trying to sell for a number of years, opted to do a wrap around mortgage. Sellers moved out of state and considering fileing bankruptcy 7, Buyers are in default by not insuring the property and late payments, Our private party mortgage holders are threatening forclosure. Would like to give up our rights to property, but do not know what to do about buyers, etc.
It sounds like you are the owners of the property, but it is not clear from your question. Assuming you are the owners, and you are behind on the mortgage, the mortgage holder is likely to foreclose. The property will be sold, and if the mortgage holder is not paid in full from the sale, you are still liable for the rest. You may want to consider filing bankruptcy to wipe out the obligation, but you would need to file bankruptcy where you live. It sounds like you are no longer in Florida, so you will need to consult a bankruptcy attorney where you live. If there is also a contract to sell the property, and the buyers are in default, you will probably be able to get out of that, but you would need to review the contract of sale to see how you can do that.
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