Sold land in 2016, buyer never missed a payment but wants out

[FrankinAz]

What is the name of your state? Arizona

I sold an improved (septic and electricity on the property) 2.5 acre parcel in December of 2016. Not wanting any headaches I had the title company handle all the paperwork, deduct from his bank and direct deposit into mine. The buyer has never missed a payment. The developing possible problem is that the buyer has gone off the deep end with serious mental issues. He thinks he's been implanted with electronic monitoring devices and got into an old west shootout with a neighbor 1/4 away ..really. He came by my house (wearing pajamas and slippers) and wants me to buy the property back, wanting more than he has in it. I left it open to buy time. The property is in his name so I'm sure he could just sell it with a quick/quiet claim deed leaving me to chase him for the remaining 38 payments. My question is: Can a lawyer get a court order halting the sale of the property. .. Thank you

 

[PayrollHRGuy]

You don't currently have a lien of any kind on the title?

 

[xylene]

At this point you have been signaled that the buyer intends to default.

Yes, you need a lawyer.

 

[FrankinAz]

You don't currently have a lien of any kind on the title?

I'll swing by the title company and confirm what they did. I assume the answer should be yes but will confirm

 

[Zigner]

I'll swing by the title company and confirm what they did. I assume the answer should be yes but will confirm

Why not just look at YOUR copies of the paperwork?

 

[PayrollHRGuy]

I'll swing by the title company and confirm what they did. I assume the answer should be yes but will confirm

That would likely be a good idea.

 

[HRZ]

And confirm what exactly was recorded ..check the county records ....in general if a lien was recorded any new buyer takes it subject to the recorded lien....however if you failed to record the lien ...OUCH ...get it done tomorrow !

 

[FrankinAz]

Yes, the lien on the property is recorded and the buyer cannot sell it without me being paid. Since he's never missed a payment or even been late there is nothing I can do till the payments stop.

 

[PayrollHRGuy]

You should be OK in the long term. There is nothing stopping the buyer from selling if he can find some sucker who doesn't do a title search but you lien would service such a sale.

How much is the property worth?

 

[FrankinAz]

Yes, even though it was a private Craigslist sale with no broker involved I wanted to make sure that all my I's were dotted and T's crossed. By having an established title company handle the transaction and administer the loan and record all the documents I am now 100% covered. Yes, I thought about the fact that he could sell the property and simply record a quick claim deed but at that point I'm told that I can instantly start foreclosure if the payments also stop.

The property is only worth $25k, maybe $30k now but I'm $10k plus on it so whatever happens .. happens.

Bottom line: having things done by legal and procedural professionals doesn't cost you money, it saves you money and headaches should a glitch arise.

 

[TigerD]

Bottom line: having things done by legal and procedural professionals doesn't cost you money, it saves you money and headaches should a glitch arise.

Preach Brother!

 

[FrankinAz]

Right on schedule the November payment came in to my bank on November 3rd. On Saturday Dec. 1st I get a letter in the mail from the title company saying that the payment from the buyer didn't go through and he is in default. And, of course, they want the payment they deposited in my bank back. Giving them the payment back is not a big deal .. my question is. Wasn't the title company a little lax here on taking a month to notify me on what's going on? This puts me a month behind on the foreclosure proceedings.

 

[xylene]

You knew this was comimg, you should have engaged a lawyer then, and you need one now.

 

[FrankinAz]

You knew this was comimg, you should have engaged a lawyer then, and you need one now.

Thank you for the fast response. I did line up a lawyer several months ago should the buyer default. My question was concerning the 30 days it took the title company to notify me that the buyer missed the payment date. From what I have read, I was able to start the foreclosure the next day.

 

[adjusterjack]

Wasn't the title company a little lax here on taking a month to notify me on what's going on?

Probably not. Could have taken some time before they were notified that the payment didn't go through. Then, with thousands of clients, a couple of weeks to notify you. The foreclosure process is likely to take you a couple of months anyway.

Don't get side tracked with a beef with the title company.