Comments on: Ruthless Default http://owner-financing.com/83/ruthless-default Owner Financing Primer Sat, 10 Sep 2011 15:04:55 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: admin http://owner-financing.com/83/ruthless-default/comment-page-1#comment-1535 admin Sat, 10 Sep 2011 14:48:46 +0000 http://owner-financing.com/?p=83#comment-1535 This is where you find out how good your paperwork is. It's not your property anymore! The fact is you sold the property, you don't own it anymore, so they are correct. What you have is a note, the performance of which is secured by the property. If the note was drawn properly it will have some language in it which prohibits destruction (waste) of the property. If they are current on the payments you will have to convince a judge they are reducing the value of the property and therefore the security of your collateral before you can do anything. Time to lawyer up I would say. This is where you find out how good your paperwork is.

It’s not your property anymore! The fact is you sold the property, you don’t own it anymore, so they are correct. What you have is a note, the performance of which is secured by the property. If the note was drawn properly it will have some language in it which prohibits destruction (waste) of the property. If they are current on the payments you will have to convince a judge they are reducing the value of the property and therefore the security of your collateral before you can do anything.

Time to lawyer up I would say.

]]> By: Kandy http://owner-financing.com/83/ruthless-default/comment-page-1#comment-1534 Kandy Sat, 10 Sep 2011 12:25:52 +0000 http://owner-financing.com/?p=83#comment-1534 Does a seller when owner financing have the right to go to buyers and tell them the place is not being kept up and they need to take care of property? The buyer told me a bank can't do it so neither can I .They informed me I have no business sticking my nose in theirs but it my property they are purchasing and decreasing value of Does a seller when owner financing have the right to go to buyers and tell them the place is not being kept up and they need to take care of property? The buyer told me a bank can’t do it so neither can I .They informed me I have no business sticking my nose in theirs but it my property they are purchasing and decreasing value of

]]> By: admin http://owner-financing.com/83/ruthless-default/comment-page-1#comment-625 admin Sat, 13 Feb 2010 19:40:57 +0000 http://owner-financing.com/?p=83#comment-625 In these times I think you did the right thing by taking his offer. One of the investment advisers I heard years ago said the best advice he could give was never spend good money chasing money that was already lost. Your other questions are good but the answers are "above my pay grade". I'm neither a CPA or attorney; just a guy that did quite a few real estate deals over the years. The question I would have for a CPA is if your profit percentage changes. You calculated that when you reported the sale and have been making the allocation between profit and return of capital for the last five years. In effect, you now sold the property for less and I wonder if you can correct for that. Thanks for the question. If you feel like posting the answer sometime I would enjoy seeing it. In these times I think you did the right thing by taking his offer. One of the investment advisers I heard years ago said the best advice he could give was never spend good money chasing money that was already lost.

Your other questions are good but the answers are “above my pay grade”. I’m neither a CPA or attorney; just a guy that did quite a few real estate deals over the years. The question I would have for a CPA is if your profit percentage changes. You calculated that when you reported the sale and have been making the allocation between profit and return of capital for the last five years. In effect, you now sold the property for less and I wonder if you can correct for that.

Thanks for the question. If you feel like posting the answer sometime I would enjoy seeing it.

]]> By: Carolee Notor http://owner-financing.com/83/ruthless-default/comment-page-1#comment-624 Carolee Notor Sat, 13 Feb 2010 18:52:23 +0000 http://owner-financing.com/?p=83#comment-624 Well I did it.....I "held paper" on the sale of my home five years ago. It was less than a quarter of the sale price. I correctly reported it to the IRS as an Installment Sale. My Buyer got into trouble last summer, due to financial overextension in general. He had purchased my home as a development property, not a primary residence. He offered me $.50 on the $1.00 for what he owed me and I took it. My questions are: Do I 1099-C him? And how do I report that the Installment Sale is over? I know I report the portion I did receive, but what about the portion I forgave. I assume that when you report an Installment Sale and it shows the amount of money you expect to be receiving to make the sale price, that it carries forward in your records and the IRS is watching for it to be forfilled. In this case, it won't be and I am wondering how I handle it. Thank you for your help. Well I did it…..I “held paper” on the sale of my home five years ago.
It was less than a quarter of the sale price. I correctly reported it to the IRS as an Installment Sale.

My Buyer got into trouble last summer, due to financial overextension in general. He had purchased my home as a development property, not a primary residence. He offered me $.50 on the $1.00 for what he owed me and I took it.

My questions are: Do I 1099-C him? And how do I report that the Installment Sale is over? I know I report the portion I did receive, but what about the portion I forgave. I assume that when you report an Installment Sale and it shows the amount of money you expect to be receiving to make the sale price, that it carries forward in your records and the IRS is watching for it to be forfilled. In this case, it won’t be and I am wondering how I handle it.

Thank you for your help.

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