Dear Mr. Feichthaler:

I sold my property four years ago and provided seller financing. Although the payments came in as expected for a while, the borrowers stopped paying the mortgage in January. I wrote them a letter threatening to foreclose if they didn’t bring their payments up to date. They have proposed that they sell the property back to me. Can they do that, or do I have to receive all of their payments first?

– Tim H.

Dear Tim,

I represent many clients that have provided financing in conjunction with selling their homes, and issues do occasionally come up. Many times, the borrowers will be able to make partial payments to show good faith, and promise to be up to date in a short period of time. Although uncommon, selling the property back to you as original owner is another way this could benefit all parties. First, the cost, time and stress of foreclosure is avoided for all parties. The key, as always, is the price at which you are taking back the property. If that price is beneficial to you, we would prepare a contract detailing the price and other terms. Those terms would include a satisfaction of the mortgage, and a payoff of the note owed to you. Basically, the sales price would be offset by the amount they owe you at closing, so the borrowers would not have to come up with the money, simply for you to give it back to them.

It is almost always preferable to resolve these matters amicably rather than court, so long as the repurchase terms are reasonable to you.

Eric P. Feichthaler has lived in Cape Coral for over 30 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Historical Museum, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 18 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator.

Mr. Feichthaler can be reached at eric@capecoralattorney.com, or (239) 542-4733.

This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.