Collection of Delinquent Payments
I carried a loan of $36,900 on the sale of my parent's home. The buyer was late paying five of the last seven payments and bounced a check that was to cover the last two. The buyer refinanced and paid me $2000 of the $33,000 he still owes and I agreed to stagger his payment from his mortgage. His first payment to me was due April 15th and I have not received it. The buyer is self-employeed. I'd like advice on what my options are. The buyer used the money to build a workshop on the property, replace the flooring (because he wanted to, not because he had to), etc. Can I file a mechanics lien? What other options do I have? Thanks!
1 Answer from Attorneys
Re: Collection of Delinquent Payments
Your inquiry does not state if the loan was evidenced by a promissory note and secured by a deed of trust [or mortgage]. For purposes of this response, I assume the buyer signed a properly drafted note and is in default. You probably have no right to file a mechanic's lien. Under the circumstances, if the note was not secured, you can sue on the note, get a judgment, perfect a judgment lien and foreclose the judgment lien. If the note was secured, you can foreclose the deed of trust through a public trustee's foreclosure proceeding. Under either option, you can effectively accelerate the debt [make it immediately due and payable in a lump sum, not installments].
Related Questions & Answers
Won Judgment; Garnishment in Progress; Attorney Threatening to Sue Me I won a... Asked 8/17/03, 2:09 am in United States Colorado Credit, Debt and Collections Law
Harrasment for 12 year old charged off debt I received a call from a collection... Asked 7/24/03, 8:51 pm in United States Colorado Credit, Debt and Collections Law
Medical Bills and Divorce Final Orders Former spouse was ordered via divorce to pay... Asked 6/21/03, 11:47 pm in United States Colorado Credit, Debt and Collections Law
Collecting a judgment when debtor has filed bankruptcy My husband and I recently won... Asked 5/17/03, 9:32 pm in United States Colorado Credit, Debt and Collections Law
If you received a summon I recieved a summom to appear in court regarding a debt... Asked 5/07/03, 6:20 pm in United States Colorado Credit, Debt and Collections Law