Real Estate Law
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Just so I'm clear on the facts, do you have a deed of trust giving you a lien on the property to secure the note that you received? Thank you!
Thank you! Even if you have a lien, that does not mean that you have to foreclose on the lien to collect the note. The property just provides you additional security in addition to your buyer being personally obligated. So, you can simply file suit on the default under the note. Filing the suit will give you the collection options and leverage you need to collect the debt owed you. That's because once the suit is filed and a judgment awarded, you become a judgment creditor, and if she doesn’t then pay the judgment, you can have the sheriff serve a summons on her for a debtor examination. That forces her to meet you in court again and answer questions under oath about her assets. After that information is obtained, you have the power to attach bank accounts, have the sheriff seize other personal property, and/or place liens on any non-homestead property he owns to satisfy the judgment. Texas, unfortunately, is one of 4 states that does not allow wage garnishment in this situation, so that would not be an alternative for you. In my experience, simply filing the suit is typically all you need to do to resolve this outside of court because most of the time, once served with a summons she is being sued, your debtor will want to pay the debt rather than defend a suit she's got no chance of winning.
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