Legal Question in Real Estate Law in Massachusetts

Seller-Financed Mortgage

We were anxious to sell our house in a tough MA real estate market, so we gave our buyer their 3rd mortgage in the amount of 12,000. Buyer is supposed to pay interest at $100/month, and late fees are only 3% of interest amount. Principal is payable in Jan 2008. To date, we've received no payments. We already sent him a reminder via US mail. What should be our next step?


Asked on 4/01/07, 5:43 pm

2 Answers from Attorneys
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

Seller-Financed Mortgage

First, I would hope that the mortgage is in writing, and second I would hope that you filed the mortgage in the registry of deeds.

If you have, then you can move per the steps outlined in the loan agreement. If not, you need to file an action in the district court to sue on the unpaid loan, and move for an attachment on the property.

If you need assistance, contact me.

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Answered on 4/01/07, 6:08 pm
Craig J. Tiedemann Kajko, Weisman & Colasanti, LLP

Re: Seller-Financed Mortgage

Take immediate action, because the buyer's failure to make any payments at all is not a good sign, and whatever liquidity they may have is probably not going to last. I would bring the matter to an attorney, who can quickly work to best protect your rights.

I would be glad to help you along. Contact me for a free consultation in my downtown Boston office.

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Answered on 4/01/07, 7:14 pm


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