for closure after 10 days late on my first payment?

Question

I have two loans for my house one is a big lump some and the other is 20,000. Well i am behind 10 days on paying my first payment on the smaller loan and the loan is through an indiviaul not through a morgage company can he forclose on us after being late on our first payment. He came to my house cussing and screaming about that we need to pay him tomorrow or he will forclose on us.

Answer 1

At closing, you signed paperwork to your mortgage company for the "big lump sum", and other paperwork for the $20,000. Read it to make sure, but I doubt it has any clauses that allow "...instant foreclosure if buyer gets seller angry enough to cause cussing and screaming....". But re-read it just in case.

Bostonian has the correct answer. The paperwork outlines late fees, and default issues. Don't let him scare you, but do make your payments.

Answer 2

The short answer is MAYBE? The 2nd is a contract for deed, which does NOT give you the same rights and protections as a normal bank mortgage.

The only way to know is to look at the NOTE and mortgage from that 2nd. It will spell out how the default process can go.

Bottom line, the guy is an idiot. If he tries to foreclose, he'll lose every penny of his money anyway, since the first mortgage guys get paid 100% of all of their money, including accrued interest and legal fees, before your guy gets his first dollar.

You might look at getting a restraining order to prevent him from showing up at your house cussing and screaming. That behavior is threatening, something a bank could never do, and is not acceptable.

You may need to get yourself a real estate attorney to review the loan documents and see what your rights are.

Answer 3

Yes.

Being late on the first payment can be considered FRAUD by lenders. It is simply risk associated analysis. There is a high degree of chance that there is incorrect data on the loan application and that is why the loan was approved. Many loan brokers use white-out and other means of fraudulently qualifying their borrowers. Being late on the first payment is a major warning sign to lenders that loan fraud may have taken place. Expect a pretty thorough investigation if this is a conventional lender.

In either case, they do not have the right to come to your door and harrass you. Let him dig his own grave but take good notes and consult any witnesses,

Here is some additional info. Hope this helps.

Answer 4

If he does that again, call the cops. He's both trespassing and disturbing the peace. The Fair Credit act applies to owner-carry financing as well. If he doesn't follow the law, he may lose the right to recover some of the debt.

Although he could start foreclosure proceedings, those take a while and you can stop it cold at any point prior to the actual foreclosure date by making up the missed payments.

Answer 5

I dont think so. Im in the mortgage business and it takes months for them to do something like that. I've had customers with payments over 90 days late and they are not on foreclosure yet.

Answer 6

If it's a private loan he can start the process, but it will take a few months for the legal work to be completed.

Answer 7

You're late on your first payment??? I'd be cussing you out also! Why did you get a loan if you can't pay it?? What did you do with the 20K? Couldn't you have saved at least enough of it to make a payment? sheesh

Answer 8

If it is federally insured money, first payment default is loan fraud. you can serve 3-5 in the federal pen if you are not careful. Make your dam payments. Make them ontime.

Answer 9

No, he is just trying his luck.
It takes months of non payment to be foreclosed on

Answer 10

it takes many months of delinquency to be forclosed on.