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Category: Legal
Satisfied Customers: 57323
Experience:  Licensed attorney helping individuals and businesses
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I lent my son $50,000. We are in california. He is supposed

Customer Question

I lent my son $50,000. We are in california. He is supposed to make the interest only payment by the 7th of every month. The principal balance balloon payment is due by 2025 or one year after the date of my death, whatever is sooner. The problem, he is not making the interest only payment at all. I am considering asking him to sign a new note which adds any interest only payments missed during to principal. Is that legal?
JA: You just pay a $5 deposit now and the rest only when you get a reply from the Lawyer. All of this is 100% satisfaction guaranteed, so you can get a refund if you're not happy for any reason. Has anything been filed or reported?
Customer: There is a note payable against his house, but it is not recorded as of this time
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: California
JA: Anything else you want the lawyer to know before I connect you?
Customer: No, I don't think so.
Submitted: 4 months ago.
Category: Legal
Expert:  INFOLAWYER replied 4 months ago.
You may do a new note. The new note can replace the old note. It can change the terms and add interest. Have it dated, signed and preferably notarized.
Expert:  INFOLAWYER replied 4 months ago.
Good luck. Kindly rate me five stars.
Customer: replied 4 months ago.
I'm sorry, but you didn't answer the question. My question is the change legal and enforceable in california? Can a lender add interest payments to principal as a penalty for missed payments on an interest only secured note. It is secured by real property.
Expert:  INFOLAWYER replied 4 months ago.
The lender can make the change if both sides agree to sign a new note. Absent a new note lender cannot add interest or other penalty