Legal Question in Credit and Debt Law in Colorado

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!

Asked on 4/22/04, 10:11 am

1 Answer from Attorneys

Roger Johnson Roger D. Johnson, P.C.

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].

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Answered on 4/26/04, 12:46 pm

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