I have a freind in Texas that was selling some land as well as a mobile home back in 2009. The young couple that wanted to purchase them could only get approved for $50,000 so my friend owner financed the balance of $15,000. She only asked $5,000 for the trailer because it was never renovated after the hurricane. Although she still had a balance owed which was much more. She discolesed the lienholder, etc. The contract doesn't state anything about early pay-off, it just states a payment schedule with the final payment being in 2014. The contract also stated that the purchasers were to have insurance on the mobile home, which they did not so the lienholder put their own insurance at a cost of $100 per month, which my friend has been paying. Now the purchasers want to payoff their balance and get title to the mobile home by September. Does my friend have to speed up the payoff process or can she stick to what's written in the contract for the payment schedule?
Hello, my name is Ely. I am here to help you. There may be a slight delay between your follow ups and my replies as I type out a reply. Please note: (1) this is general information only, not legal advice; and (2) my function is to give you honest information and not to tell you what you necessarily wish to hear.I am sorry for your friend's situation. I am a little confused because there seem to be use of "friend" for more than one party. Is here any way I can ask you to re-phrase the question using actual names for clarity, i.e. Dave loaned Abby $5,000, etc?Thanks in advance.This not an answer, but an Information Request. I need this information to answer your question. Please reply, so I can answer your question. I look forward to helping you.
I have a freind, Jessica, in Texas that was selling some land as well as a mobile home back in 2009. The young couple that wanted to purchase them, James and Roya, could only get approved for $50,000 so Jessica owner financed the balance of $15,000. Jessica only asked $5,000 for the trailer because it was never renovated after the hurricane. Although Jessica still had a balance owed which was much more, she disclosed the lienholder, etc. The contract doesn't state anything about early pay-off, it just states a payment schedule with the final payment being in 2014. The contract also stated that the purchasers, James and Roya, were to have insurance on the mobile home, which they did not. So the lienholder put their own insurance at a cost of $100 per month, which Jessica has been paying. Now James and Roya want to payoff their balance and get title to the mobile home by September. Does Jessica have to speed up the payoff process or can she stick to what's written in the contract for the payment schedule?
Thank you, Jodie.If there is no contract clause that obligates James and Roya to pay off at a certain schedule (to ensure that Jessica gets the maximum out of the interest), the default contract doctrine is that James and Roya can pay off the amount earlier in sum and take title, I am afraid. Jessica cannot hold them to monthly payments if they simply wish to pay it off all-together, unless the contract specifically states that monthly payments are mandatory and/or there is an early payoff penalty.However, Jessica may hold them responsible for the insurance that they were supposed to have, and Jessica's injury because they did not - she can add that total to the total due, and if they refuse to pay, then this would be settled in Court (in which case the Court is likely to allow them to pay off early, but also make them responsible for any extra payment Jessica had to make for the insurance on the property to the lienholder).While the legal system tries to be inclusive of every possibility, sometimes people have limited avenues to seek relief. Surely, you prefer that I tell the truth rather than what you wish to hear. Because I do not get credit unless you press one of the top three faces, keep this in mind when rating my answer and please do not punish me for being honest. I understand that this may not be easy to hear, and I empathize.IMPORTANT INFO: I hope this finds you well. Please use REPLY TO EXPERT to keep talking, or RATE my answer when we are finished. Kindly rate my answer as one of the top three faces and then SUBMIT, because this is how I get credit for my time with you. Rating my answer the bottom two faces does not give me credit and reflects negatively on me as an expert even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith. Do not worry, you may always ask follow ups free after rating.
I absolutely want the truth, so thank you for that. One more question for you, if they have been late on payments and the contract states that an additional $30 late fee is applicable for each late payment and they failed to pay this, can Jessica also include this is in the payoff fees? I'm just trying to find some answers in which to help her as much as possible with this mess. Thanks so much.
Jodie,Absolutely. The late fee does not go away simply because they wish to pay off in lump sum. So it remains outstanding and must be satisfied.IMPORTANT INFO: I hope this finds you well. Please use REPLY TO EXPERT to keep talking, or RATE my answer when we are finished. Kindly rate my answer as one of the top three faces and then SUBMIT, because this is how I get credit for my time with you. Rating my answer the bottom two faces does not give me credit and reflects negatively on me as an expert even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith. Do not worry, you may always ask follow ups free after rating.
I know I said only one more question, I hate afterthoughts, I apologize. Do James and Roya have to give a timely notice of payoff? Also, what if the repairs that were to be made in contract on the mobile home were not done by James and Roya by the specified time? Ok, I promise that's it.....
No worries! Please ask as much as you need - this is why I am here. My aim is that you are 100% satisfied.Do James and Roya have to give a timely notice of payoff?Not necessarily. While this is expected, it is not mandatory.Also, what if the repairs that were to be made in contract on the mobile home were not done by James and Roya by the specified time?Then Jessica has the right to request the amount that would be reasonably needed to have a contractor make the repairs as part of the pay off.
Thanks for your patience with me. I hope you don't mind but I would appreciate your opnions if something else occurs to me. You have been extremely helpful and I appreciate your time.
Jodie
My pleasure, come back any time.