Owner carrier loan note

[Teresa Champion]

I had a tenant who was on a Purchase Option Lease and he decided to do the option to purchase. In his rental the purchase price for the home was clearly stated for $220,000. He got loan approval for only $213,000, so would have to get a second on the house for $7,000 with me carrying the note. We had a transaction broker during the deal and we he had tried to get him to sign the note for the remainder, the tenant claimed he knew nothing about it and refused. Everyone was communicating with the tenant regarding this and he had acknowledged it, until we were at the closing and he refused. I live in Colorado Springs, Colorado and need to know what is my legal recourse regarding the note and bringing the tenant, who is now the new home owner, to court?

[elklaw]

First, I recommend consulting with a real estate attorney in Colorado. If your claim is that you are owed $7,000 for the home purchase and you have the documentation to back that up, your options appear to sue for the $7,000 in court with another option being pursuing placement of a lien on the home for the $7,000 owed on the lease option contract that is not being paid. Another option is to foreclose and claim that the $7,000 is an equitable second, but the problem there is the first mortgage stands in front of you. A local real estate attorney can give you a better idea of what is the best way to proceed for that area. Most attorneys offer free initial consultation.