Costa Rica foreclosures

[rf2cr]

If we were to carry paper on a property we have for sale and the buyer defaults, how difficult is it to get the property back? Any info would be greatly appreciated.

[wmaes47]

This is something you need to ask your abogado in Costa Rica.

It also depends on how the property is held and how you structure the contract.

It is recommended that the two parties, to a real property sale, have seperate abagados. These two can design a contract that will work for both parties and be iron clad for both.

Pura Vida
Bill Maes

Edited on Sep 26, 2006 09:09

[rf2cr]

Bill,

Greatly appreciate your reply, what you have given me is commonsense and these are legal things that we would handle with any property sale.

What I really hope to get from this posting is people who have actually had to go through the forclosure process and their experiences.

Thanks & Saludos
Ruth Fountaine

[Andrew]

The only people that I know who regularly make money with foreclosures are A: Attorneys and B: Those same attorneys that know their specific geographical area like the back of their hand.

I know one gringo who claims he’s making money with foreclosures but I also know for a fact that his attorney is making a lot more than him and he doesn’t even know it.

Most people that have been here for a few years will rightly advise you to avoid – like the plague – getting involved in any legal process in Costa Rica.

Scott Oliver – Founder
WeLoveCostaRica.com

[rf2cr]

Scott,

There appears to be some misunderstanding, we have ZERO interest in getting into the business of foreclosures. We have considered offering to carry paper on one of the properties we have for sale and merely wondered if anyone has gone through the experience of having to foreclose on a defaulting buyer and what is involved.

Regards,
Ruth

[Andrew]

My point remains the same: “Most people that have been here for a few years will rightly advise you to avoid – like the plague – getting involved in any legal process in Costa Rica.”

So, if you feel that there is a higher than average probability of foreclosure, I would suggest that you avoid entering into that transaction to begin with…

Scott Oliver
WeLoveCostaRica.com

[GringoTico]

I second Scott’s advise. Nonetheless, it is very common for Tico sellers to carry some paper for the buyer (mostly due to the difficulty of getting sufficient bank financing in CR). A lein is placed on the property, just like in the US, which serves as collateral for the loan. I’ve done it myself, and fortunately no foreclosure process was necessary – he paid off as promised. Like everything else in life, it’s a gamble, though a calculated one. Don’t carry all the paper, just a small part of it. This will limit the downside.

[rf2cr]

Scott & GringoTico

Thank you gentlemen for your information and comments, I think we will not offer to finance, just make the decision if/when asked.

Saludos,
Ruth

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