Legal Question in Real Estate Law in California
Buyer of My House Refuses to Pay Balance of Payments
I sold my house Sept. 2001 in San Jose. As part of the deal, I got an unsecured 3rd Mortgage in the amount of $52,000. The buyer gave me $52,000. in post-dated checks. I cashed the first 2 checks beginning in Oct. 2001 with no problems. However, beginning with the Nov. 2001 checks, the checks started bouncing and the buyer started making excuses. He still owes $35,000. Talking with him and then sending certified letters threatening legal action didn't work. I have the bounced checks. A lawyer friend said I need to get a judgement and put a lien on the property. If this is my best option, how do I go about doing this?
4 Answers from Attorneys
Re: Buyer of My House Refuses to Pay Balance of Payments
The only way to get a judgment is to sue him. You will either need to file the suit yourself, or hire an attorney to represent you. If you have a written agreement calling for attorney fees, you may be able to recoup those.
Re: Buyer of My House Refuses to Pay Balance of Payments
Getting a judgment and putting a lien on the property are steps 2 and 3. The first step is (after a quick factual investigation) to file a lawsuit.
The terms 'unsecured' and 'mortgage' are incompatible. If your loan was unsecured, there is no mortgage. This is unfortunate, because you are deprived of certain procedural opportunities.
I think you need to consider filing a suit in superior court, but before you spend a lot of money on the suit, be sure to have the local real-estate lawyer you're going to retain investigate the status of title on the house, the status of recorded deeds of trust and other liens, the market value, and whether the deadbeat buyer has assets or income, or whether a judgment will not be collectable. Suit may not be worthwhile.
Another possible avenue to explore is criminal prosecution on the bad checks. Your buyer has ostensibly committed one or more felonies. Ask your district attorney for assistance and direction.
Re: Buyer of My House Refuses to Pay Balance of Payments
Thank you for your question. As your lawyer friend mentioned, you should pursue this legally which will require a lawsuit by you. The best suggestion I can make is for you to retain counsel in San Jose who can file a breach of contract action and other causes of action in Santa Clara Superior Court. I am located in downtown San Jose and would be able to assist you if you so desire. If you are interested, please call me at (408) 268-2580.
Sincerely,
Kai H. Wessels, Esq.
Re: Buyer of My House Refuses to Pay Balance of Payments
Oops, bad mistake.
You must move quickly and sue the buyers in court. Once you serve them you should be able to get a judgment in about 4 months. Then apply for and obtain an abstract of judgment to record in the county in which the property is situated. Then consider your judgment collection options.
You can do this yourself with patience, time and persistence. You will need access to a law library and you will need to ask questions of whoever can help you. Otherwise you can hire a lawyer to do this for you. It should not be too expensive.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
