Question:  I sold my Chandler home five years ago for $75,000.  The buyers made a $25,000 down payment and I financed the buyers with a $50,000 “seller-carry-back” loan, i.e., the buyers agreed to pay me $50,000 in monthly payments over ten years at 12% interest.  The buyers are now going through a divorce and eight months ago stopped making the monthly payments.

  My title company has now scheduled a foreclosure sale in approximately 90 days.  Will this foreclosure sale be a silent auction or will potential buyers bid against each other?  Who will own this home if no potential buyers attend the foreclosure sale?  If someone buys this home at the foreclosure sale, I know that this buyer will have to pay my costs such as recording fees and title company fees, but who pays these costs if no one buys this home?

  Answer: First, the foreclosure sale, usually at the courthouses steps or at a title company’s office, is a public auction.  In other words, the title company representative holding the foreclosure sale will receive bids from prospective buyers until accepting the highest bid.  Second, inasmuch as the majority of foreclosure sales have no prospective buyers, there will probably be no bidding and you should expect to become the owner again of the home.  Third, if you become the owner of the home again, you will not receive any reimbursement for your costs.

  Note: After you become the owner of the home, you should give five days’ written notice to the buyer who bought your home to demand possession of the home in order for you to rent or sell the home.  If the buyer will not move out after the five days’ written notice, you can institute eviction proceedings.

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