Posted by JohnBoy on October 01, 2004 at 12:17:21:
If you recorded a performance mortgage and the seller has breached the mortgage, then you can foreclose. But remember, you will need to still satisfy the first mortgage on the property.
Why did you set this up allowing the seller to make the payments? YOU should be making the payments directly to the seller’s mortgage company to insure those payments are being made.
Instead of foreclosing, first try to get this resolved with the seller. YOU start making the seller’s payments and if there is any extra left from your lease payment to the seller, just send him the difference.
Did you get an authorization to release loan info from the seller? Verify if the loan is current or not. If not, verify how much is owed to bring it current. Then get it current if need be and YOU take over sending in the payments directly to the lender instead of depending on the seller making the payments. You should have done this from the beginning. In the future, NEVER trust a seller to make the payments! ALWAYS send the payments yourself to the lender and just send the seller any difference from your payments to him if there is any.