Payment question: can you help?

Question

In 2001 I sold a property to a woman for $155 G at 10% interest to be made in payments of $1500/mo. until 2020 (according to a CPA). I'm now making her an offer to pay off the balance (of $135 G, according to the CPA) for $100 G cash. She says 100 G is high since she's already paid X amount; I say it's low - much better for her to pay 100G now than make another 14 years of payments. What do you think?

Question no. 2: She claims that the payment schedule made by the CPA is "only for the bank" and she really owes 12, not 14, years. Is that BS?

If you answer, please tell me what your qualifications are.

Thanks!

Answer 1

I think it's dependent upon the contract she signed.

Assuming everything is as you say, your figures are at least approximately correct. But the average person does not understand amortization, and how in the early years the vast majority of the payment is to pay off interest as it happens. Your figures look at least approximately correct.

As for her "only for the bank" argument, explain to her that the payment schedule is according to the contract she signed, and acquiring the loan under fraudulent conditions is grounds for prison time.

It strikes me that your payoff offer is incredibly generous. If her payments have been on time, you could probably sell that note for significantly more than face value, particularly if the property has increased in value. If her payments haven't been on time, you might have grounds for foreclosure, penalties, etcetera. It doesn't look like she has any gripe coming.

Answer 2

I'm NOT qualified.
But if you have a signed contract for the original price and payments, then she's stuck with it.
You're offering to let her buy it out right and get it over with, probably saving her tons of $ in the long run and she's arguing with you.
She's wanting you to deduct the X amount that she's already paid toward the loan from the $100,000 buy off and you shouldn't do that. You'll be the one getting screwed out of that deal.
She can 'claim' anything she wants. The fact remains that you have a signed contract in your hand and she agreed to 14 years of payments. Period.
Sounds like she's trying to pull a fast one on you and you should be very careful when dealing with her. Don't agree to anything, not verbally and no signing of papers without talking to the CPA first.

Answer 3

Check your contract. It should all be spelled out in there. Your note with her has all the answers. See your CPA and then a lawyer. You may just have to live with it.

Answer 4

155k for 10% until 2020. its under standard amortization term.

You can print out an amortization schedule to show her that if you under 155k, 10%, 19 years ( from 2001-2010) x amount is go towards your principle, and y amount is go towards interest.

http://www.fiscalagents.com/toolbox/cal/mort/mort_am_sched.shtml

Try the above website, ( I am not affiliated with them ), to show from start date, until today, your principle paid is only x amount. The remaining principle is y amount.

Then you can make the offer. For example, the principle is left with 135k, and you make an offer to her is 100k, i think she would be pleased.

Just need to printout, and study the amortization schedule before showing it to her.

Answer 5

$155,000 at 10% interest, payments of $1,500 per month.... that's a 237 month loan. Interesting term.

At month number 73, (I think that's about where you are) she still owes $135,299.66 to you.

If you want $100,000 for that loan, I'd wager there are investors that would pay you for it. Have her payments been on time?

Wish I had $100,000 right now, I'd buy it.
...... come to think of it, I'll talk to Bob, he may want it!