How do you guys write up in contract or PA about when late is too late and when it could be foreclosed on if not paid on time. I had the buyers sign that they would sign over house back to me if they couldn’t pay but how long would you wait until you let them or MAKE them sign back over. Would you charge a late pasyment if not paid on time. Thanks sooooooo much for any suggestions
Didn’t you have provisions in your contract for late payments? I would have started FC imediately, or start sending letters of such. herbster
I’ve done one owner-financing deal. It has a 4% (of the monthly payment) late fee if paid after the 15th of the month just like all my mortgages. Fortunately I haven’t had to deal with a late payment but if it becomes 1 month late I’ll contact my lawyer to start foreclosure proceedings.
Thanks, That was what I was going to do but they aren’t late yet but I fel ify about them.
One you do as NCREI stated, you have a late payment fee and over due date.
Two, I send a late notice and make a phone call. Normally they should let you know if they have problems making payments. At this point I generally get the payment sent out.
Third if after the letter is sent, no responds from the payor, then I send a notice of intent to forclose by register mail (my proof to any court that I made every atempt to contact the payor). Then have I have my legal counsel file for forclosure.
This may take a couple of months, but it keeps me from looking like I am forclosure crazy in the eyes of any court or consummer group.
Paul