What is the first step I should take?
I owner financed a house through a lawyer (deed of trust). The buyer is late on his first payment. What steps should I take first and can I charge him a late fee? I want to work with the buyer but I do not want this to become a habit. Advice please.
Thanks for checking out our site and visiting the forum. When you’re dealing with an owner financing situation, the amount of the late fee should be in your contract. In terms, of taking a step after the buyer pays late, that is usually in the contract your attorney drew up as well. Typically, the buyer has a certain number of days to pay rent after the due date as a grace period, then a late fee is added and if the payment still isn’t made, then you may be able to foreclose on the buyer depending on the state you’re in and your contract. I would recommend consulting with your real estate attorney.
All the best,
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