Ex is still in house after foreclosure and doesn't want to leave

[Account Closed]

I little over a year ago I sold a house to a lady with owner financing. But it was her boy friend that put the down payment down 5k then and 5k later which he paid.( he was also the father of some of her children) The house went in default when he found out about it he brought it current.  He fixed the house up with his money. The couple broke up and the lady stopped paying again. The guy is living in the house and  paying the ex the money to make loan payment which she didn't do which is the story he told me. He found out about the foreclosure too late to stop it now he wants to keep the house. His ex missed 5 months going on six if you count Febuary. He is suppose to have $4,500.00 today which is a lot less than the loan got behind. I have paid $1,500.00 on the foreclosure plus making all those payments on the underlining loan. ( what a pain)

I'm not sure how to proceed I would make more money if he would move on and I would resell the house for what it is worth now, not what I sold it for before. Nevertheless I want to do the right thing just not sure what that is. I don't want to go thru another foreclosure. Glad the bankruptcy firms didn't talk her in to filling a bankruptcy I know for a fact they were sending her letters to use their service. 

[Charlie Fitzgerald]

My thought is that you need to address this with him from this point in time...regardless of the past.  He had culpability to ensure where the money he was giving his ex was going..so he can't hang that on you.  If it were me, I'd do a brand new deal with him directly at the same price point I would do it with a new buyer if he left .  I would be inclined attempt to work with him as he is in place and it will save me some money to do so, and he at least has earned the opportunity to make it work...just not at my expense.  I'd get whatever money he has from him as a new down payment without leaving him in too big of a bind...he still has to eat and get to work etc., I'd write a new contract with him with the new terms based on the new price.  If he can't swing that, or want's more than I am willing to give him in the new deal, then he is out.