Delinquent Buyer- Need to Foreclose?

[David Schweibish]

Hello all,

Quick and dirty:

I purchased an REO 3bd/1ba single family house in Miami-Dade County (Florida) in 08/2009 for $24,100. Sold one month later to long-term existing tenants (with a flawless payment history at a rate of $800/month) via owner/seller financing where I agreed to sell for $36,100 and hold a $36,100 interest-only note amortized over 30 years at 7%, with a one year balloon. Buyers made first nine payments on time and in full, but have not made the last three payments due to lack of work. Balloon period expired on 10/01/2010. Mortgage broker has been seeking funding for a new mortgage to buy me out to no avail- banks say loan is too small and investors only kick the tires due to delinquency.

So what are my options at this point? I feel like foreclosure proceedings need to begin. Or should I try to convince the buyer to sell on the open market (even if for less than what is owed to me)? If I need to foreclose, is the only pathway through an attorney? How much $$$ am I looking at putting out to execute a foreclosure on the buyers? I would much rather have them sell on the market, accept less than what is owed to me, pay an commission, and bite the bullet than wait months and months for foreclosure.

This is my first exposure to a potential need to foreclose!

Thanks for whatever help/advice can be offered...