Resolving Owner Financing Disputes in Texas: Enforcement & Defense
Even well-drafted owner-financed transactions can lead to disputes. Whether it’s missed payments, unclear terms, or conflicting expectations, these situations can quickly escalate into legal battles. At Guerra Days Law Group, we represent both buyers and sellers in resolving owner financing disputes across Texas.
Common Disputes in Owner Financing
- Non-payment or missed payments
- Failure to record documents
- Ambiguous or incomplete contracts
- Disputes over balloon payments
- Due-on-sale clause violations (wraparound conflicts)
- Improper foreclosure or eviction actions
Legal Remedies for Sellers
If a buyer defaults under an owner-financed contract, sellers typically have the right to pursue one of the following:
- Non-Judicial Foreclosure: If a deed of trust is in place, foreclosure can occur outside of court under Texas law.
- Judicial Foreclosure or Lawsuit: When terms are disputed or no deed of trust exists.
- Eviction (Forfeiture): In some contract-for-deed situations, sellers can pursue eviction — but only if statutory protections are followed.
- Demand Letters & Workouts: We often resolve disputes before litigation begins.
Legal Remedies for Buyers
Buyers may have claims or defenses if the seller:
- Fails to properly disclose loan terms
- Improperly initiates foreclosure or eviction
- Doesn’t record the transaction
- Breaches the agreement or misrepresents the property
We assist buyers in asserting equitable rights, rescinding unlawful contracts, and preventing illegal evictions or foreclosures.
Our Approach to Owner Financing Litigation
Our team works to resolve disputes efficiently but is prepared to litigate when needed. We begin with a case assessment, review the documents, identify legal violations, and create a strategic plan that may include:
- Filing or defending lawsuits
- Negotiating settlements or forbearance agreements
- Foreclosure processing and oversight
- Quiet title or declaratory judgment actions
Coming Up: In Page 5 of our series, we answer the most frequently asked questions about owner financing in Texas.
If you’re involved in a dispute or concerned about your rights under an owner-financed deal, contact Guerra Days Law Group today.