Legal Question in Real Estate Law in Arizona
Defaulting on a Land Promissory Note
My husband and I sold a piece of property 1&1/2 years ago and are currently holding the note. We are the bene. on note. The current owner is currently in default and states she wont be able to make anymore payments but she does have an investor that wants to buy the property from her and have us carry him. How should we handle this? Should we forclose on her and then sell the property to him? Does she have the right to sell the property since she is already in default? The way they want us to write it up is to show him buying from her and transfer title to him and a new note with new terms drawn with us carrying. He is willing to make monthly payments for the remander that she owes us excluding interest. What should we do that would be in our best interest? And what would be the easiest and safest way for us to write this up and have it recorded properly so we dont get *%$*!
thnks for any advice
1 Answer from Attorneys
Re: Defaulting on a Land Promissory Note
To advise you about the best way to deal with the circumstances that you describe, would require that I meet with you and review the documents, the facts and your goals and risk taking ability. If you sold the property and transferred title to the buyer, then only the buyer can convey title to the property to another person. You are a creditor and hopefully you are secured by the property, with a recorded deed of trust or mortgage document. I do not have enough information to answer your questions. I strongly suggest that you do nothing but protect your rights against the original purchaser, take no other action with the new buyer until you have counsel and know your options and rights.
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