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Ask Loren Your Own Question
Loren, Attorney
Category: Business Law
Satisfied Customers: 33442
Experience:  30 years experience representing clients .
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Hello I am behind on my house payments which are owner financed.

Customer Question


I am behind on my house payments which are owner financed. The seller decided that he wants to take the property back to sell it. He asked me to deed the property back in lieu of foreclosure. If not he will file "full blown" foreclosure with a public sale at our county courthouse. I have 24 hours to give him my decision.

I think if I bring the payments up to date he can not foreclose, am I correct and how much time would I have to bring payments up to date before foreclosure? thank you
Submitted: 6 years ago.
Category: Business Law
Expert:  Loren replied 6 years ago.
Depending on the timing of the various required notices, it usually takes approximately 90-120 days to effectuate an uncontested non-judicial foreclosure. This process may be delayed if the borrower contests the action in court, seeks delays and adjournments of sales, or files for bankruptcy.

Most mortgages contain an acceleration clause which allows the lender to call the entire loan due in the event of default. Therefore, the foreclosure could still continue even if you bring the payments current.
Loren and other Business Law Specialists are ready to help you
Customer: replied 6 years ago.

Is there any other way I can keep the house at this juncture if it contains the acceleration clause?

Expert:  Loren replied 6 years ago.
You may be able to stall the process, but eventually you will either need to refinance to pay off the seller, or modify the loan with the seller's consent.

As always, refer to local counsel to protect your rights before taking any action in this matter.
Customer: replied 6 years ago.

I plan to check with an attorney tomorrow, but would filing chapter 13 slow down the process?

Expert:  Loren replied 6 years ago.
There is an automatic stay on any creditor proceedings when you file the bankruptcy. So, the bankruptcy is stopped during the pendency of the bankruptcy. It may buy you some time to get things current.