Under these circumstances, in this case, I'd say you're fine, if you get the financed sale cleaned up.

You probably have a very specific set of circumstances that have led you to the point of wanting to liquidate your investment. 

You need to check with your utility provider to see what is common and accepted in these circumstances, your RE attorney will probably know too.

The thing about seller financing is that while the title transaction may have been accomplished, the aspects of how you put that financing deal together extends the liability and circumstances surrounding the transaction over the term of that loan, the entire deal is never finished until that note has been fully paid as agreed.

For a mortgage company to take less than what's owed...no matter what the circumstances...is, by definition, a short-sale.

Given the circumstance, what is the best way to handle this situation?

However, if the foreclosure of the borrower's main residence was the result of extenuating circumstances, an exception may be granted if they have since established good credit.

Paying your dues to be successful is not a race to the finish line, it is more a road trip with unforeseen obstacles not yet obvious that you have to deal with properly.  

If it's the latter, I think you'll have a tough time finding one willing to work under those circumstances.

Ross, the law here in not in favor of the HOA's any longer like it was when these houses were "stolen" from the banks.I'm not sure how this is handled 100% from a legal standpoint, but from what I understand, its still an asset of the bank in most cases which means that knock on the door could come when you least expect it.I'm working on a condo right now in the same circumstance, and the real estate atty's said clearing titles like this has been a "crap shoot" lately and the banks are fighting this more aggressively.