How to Collect Money Owed on a Property

When someone is in the process of buying a piece of property from you and they do not pay you for all of it, you may need to take action to ensure that you get the money you are owed. With the help of the court system, you can either get the money you are owed or you can take back the property that you were in the process of selling to the other individual.

Instructions

1

Contact the person who owes you money first. Try to contact them over the phone and in writing. In some cases, the individual may simply need to work out a payment plan with you to pay the money that you are owed. If the individual is not willing to work with you or does not respond, you have to take further action to get the money you are owed.

2

File a motion to foreclose on the property with your local court system. Depending on state law, this could involve filing a civil lawsuit against the buyer or it could simply involve providing a notice with the county clerk's office.

3

Follow the rules set forth by your state regarding foreclosure. In most cases, a certain amount of time must pass before you can foreclose on the property. During this time, the buyer can try to come up with the money before the foreclosure takes place. If he can pay off the rest of the loan during this time, you can collect the money and then stop the foreclosure.

4

Appear in court to validate your claim on the property. If you live in a state that has judicial foreclosure rules, you have to get a court ordered judgment before you can foreclose on the property. You need to prove your claim on the property to persuade the judge to issue a judgment in your favor.

5

Foreclose on the property with the help of your local Sheriff's office. Contact the sheriff and provide a copy of the judgment. Provide information about the property and where it is located. Then the sheriff will seize the property on your behalf. You can then sell the house to recoup the money that you are owed.