If we sold our home to a couple on a 2 year contract 2 years ago and now the contract is up but they cannot pay the balance, what can we do?
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If we sold our home to a couple on a 2 year contract 2 years ago and now the contract is up but they cannot pay the balance, what can we do?
They are not able to pay the balance owed because they do not have good credit, etc. What would you recommend?
Asked on August 9, 2015 under Real Estate Law, Oregon
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
If they cannot pay the balance, they are in breach of contract. You may be able to get the home back, but that is not certain unless you retained a security interest in it (e.g. had an agreement stating that you could repossess the home if the full price were not paid); or if the arrangement were that they would only take title once the full price were paid, then the home is still yours, and you can remove them if they stop paying by filing an ejectment action.
Or you could work with them and possibly rework your agreement with them, to give them more time to pay; contracts may always be revised or amended if both parties to the contract agree to do so.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
If they cannot pay the balance, they are in breach of contract. You may be able to get the home back, but that is not certain unless you retained a security interest in it (e.g. had an agreement stating that you could repossess the home if the full price were not paid); or if the arrangement were that they would only take title once the full price were paid, then the home is still yours, and you can remove them if they stop paying by filing an ejectment action.
Or you could work with them and possibly rework your agreement with them, to give them more time to pay; contracts may always be revised or amended if both parties to the contract agree to do so.
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