How Do You Foreclose On A Purchase-Money Mortgage?
If you hold a private purchase-money mortgage on a home and the borrower is default, you may, if the contract allows, legally foreclose and evict the homeowner. However, you must follow the contract and respect the foreclosure laws in your state and local jurisdiction. While foreclosing on a mortgage usually requires the assistance of an attorney, understanding the process is important so that you’re able to move on without difficulty. Examine your mortgage contract. Make sure your borrower is clearly in default on the loan based on the terms of the agreement. If your have legal ground, contact a real estate attorney so he may help you properly follow the laws pertaining to foreclosure in your city and state. Send your borrower a letter stating you intend to foreclose on the mortgage per your agreement. Give her an option of satisfying what is in arrears. If she fails to do so, contact your attorney and have him order a title report (if the mortgage is recorded). A title report will se
