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MIAMILAW1127, Lawyer
Category: Real Estate Law
Satisfied Customers: 724
Experience:  Founding Partner at Moises Law, P.A.
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I had sold a piece of property in Oakland Co. MI 3 years ago

Customer Question

Hi, I had sold a piece of property in Oakland Co. MI 3 years ago for $13k up front, self mortgaged at $100 / mo for 5 years and a final balloon payment of $38k. He has an offer from a buyer that he says won't satisfy the obligations to 1st lender fees and back taxes etc and has asked me to accept less than the obligation to me as stated (which was formally filed with the deed with the County.
Firstly, as the mortgager aren't I the 1st lien obligation to be paid the agreed amount?
He suggests that if I don't accept a lessor amount I risk foreclosure by the '1st lien holder' and would he nothing.
I think I'm correct in not negotiating the amount owed me; presumably nothing can transact without my signature / approval as the principal lien holder? I also don't believe he could have involved any other lien holders / mortgages without my knowledge and approval.
Please advise. Thanks
Submitted: 7 months ago.
Category: Real Estate Law
Expert:  MIAMILAW1127 replied 7 months ago.

Hello. Thank you for contacting me. I am a consultant here and I am looking forward to assisting you with your question. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Please be patient as I will be typing my responses to you from scratch. Also, I can only answer/address the questions you ask specifically based on the information your provide. Please try to provide as much information as possible so I can best assist you.

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That depends on whether you are the primary lender on the property. This is what would define your position. A title search would reveal all lien holders on the property.

Theoretically, if you owned the property outright and then mortgaged it to him, you would be the pri***** *****en holder and in 1st place. Only the back taxes would be an issue for you as the county can foreclose and sell the property at auction (unless you paid the taxes off).

However, you are correct in that nothing can really be done without your authorization, even as a secondary lien holder (which you may or may not be given the facts you provided).

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