I bought a home on contract in Jan 2006 through a local company that strictly sells homes on contract. I know they say payment is due by the 10th, if not rec'd by the 15th, will "serve" me. What does this mean and can I just catch up my payments to them by the end of time given without being reprimanded? How much will I have to pay to prevent losing my home? Please help me out. My payroll messed up on my paycheck and I'm totally panicking. Advice is appreciated.
2007-05-06 15:30:27 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Noone holding a mortgage wants it back right now in a down market.
I suggest calling the party holding your note and telling them your sitution and when the money is going to be there.
That should show that you always intend to send payment on time.
2007-05-06 16:00:25 · answer #1 · answered by Shwack 2 · 0⤊ 0⤋
The time between the 10th and the 15th is a grace period. This is to allow for those times when it slips your mind and time for the mail to catch up. If you continually end up being late and lets say you always pay on the 14th you still end up with only 30 days between payments. It is in your best interest to pay on time. If you miss the 15th they can do several things. They could charge a late fee, this could be a percentage, or a fixed fee. They could report you to the credit reporting companies and ruin your credit for future purchases. The thing that they could do, that is the most damaging is to call your contract. If they do that you have 30 days to pay your contract IN FULL. If you don't or can't they can take posession of the home and you will end up loosing everything. The payroll mess-up is not their problem, it is yours.
2007-05-06 22:55:40 · answer #2 · answered by ttpawpaw 7 · 0⤊ 0⤋
After The 15th you have to pay your lender a 5% on your mortgage payment so it will be a higher payment that's about it.But every state charges a different rate so check with them
2007-05-06 23:09:20 · answer #3 · answered by fontinha 2 · 0⤊ 0⤋