Does He Have Any Options?

[heren9162]

What is the name of your state (only U.S. law)?

California. Hi, I care for an elderly gentleman and am trying to get him some information.

In November 2011 he paid cash $180,000 for a home for his granddaughter and her boyfriend. He was under the impression they would be getting married. When this purchase took place he had just gotten out of the hospital and was on pretty potent painkillers. What no one told him was that the granddaughter and boyfriend just lost the house they were in to foreclosure. Had he known this, the purchase would not have taken place. The boyfriend has a successful security guard business and the granddaughter doesn't work (that's another story). Jim, my boss, is only charging him 2 1/2 % interest and his payments are $1011 and due on the 10th of each month. The boyfriend paid Jim $30,000 at the time of purchase (if he was able to do that I'm not sure why they lost the previous home and don't have all the details soooo?)

Anyway, all was well and the payments were being made until they split up. Then he quit making payments. Then they got back together and he started making the payments again. Because he is upset with her he takes it out on the rest of her family rather than being grateful for the loan. Well they split up again and it is for good. And again, he got behind on the payments. He keeps it 2 months behind because he knows Jim can start foreclosure proceedings after the third missed payment. Also when he was making the payments the majority were late and he should be paying the $35 late charge and isn't and the legal documents say he should be paying 3% not 2 1/2% interest.

My question is, is there nothing that can be done since he isn't 3 months behind? Can he just keep it running 2 months late indefinitely? And if he does become 3 months in arrears - and Jim receives a payment even one day past due date, wouldn't he be able to start foreclosure proceedings or if he doesn't pay the full 3 months he can start the proceedings?

Thank you for your time and help.

 

[Proserpina]

How is the property actually deeded?

 

[heren9162]

How is the property actually deeded?

Hi, thank you for asking. The property is deeded to Jim, my boss.

 

[Ohiogal]

So what does the contract state?
If no contract, he needs to evict these people from his house.

 

[heren9162]

So what does the contract state?
If no contract, he needs to evict these people from his house.

The contract states the loan is at 3% interest, due on the 10th of each month and $35 late charge. But the boyfriend has continually been running 2 months behind then will make a payment preventing Jim from starting foreclosure proceedings. It is our understanding that if he is in 3 months arrears then we can start foreclosure proceedings but he just keeps the payments 2 months behind. Is there anything Jim can do at this point? And should he become 3 months behind and makes a partial payment rather than the full 3 months he owes, can Jim refuse that partial payment and continue with the foreclosure ? Thank you.

 

[Ohiogal]

The contract states the loan is at 3% interest, due on the 10th of each month and $35 late charge. But the boyfriend has continually been running 2 months behind then will make a payment preventing Jim from starting foreclosure proceedings. It is our understanding that if he is in 3 months arrears then we can start foreclosure proceedings but he just keeps the payments 2 months behind. Is there anything Jim can do at this point? And should he become 3 months behind and makes a partial payment rather than the full 3 months he owes, can Jim refuse that partial payment and continue with the foreclosure ? Thank you.

Good for your understanding but WHAT does the contract state? Was the contract filed as a lien against the property? Is it on record? Was this a real estate mortgage (a lien) or a private loan? Two very different things. If your friend doesn't understand that he has issues. He may not have foreclosure rights at all. He may have to go to court. So how was this contract recorded? Where was it recorded? Where is the original contract? Where is the deed? When was it all filed, if filed at all? Where, if it all? Should I continue? Hence, why we don't like third party questions.

 

[heren9162]

Good for your understanding but WHAT does the contract state? Was the contract filed as a lien against the property? Is it on record? Was this a real estate mortgage (a lien) or a private loan? Two very different things. If your friend doesn't understand that he has issues. He may not have foreclosure rights at all. He may have to go to court. So how was this contract recorded? Where was it recorded? Where is the original contract? Where is the deed? When was it all filed, if filed at all? Where, if it all? Should I continue? Hence, why we don't like third party questions.

Jim is almost 80 yrs old, does not know how to utilize a computer nor own one and is legally blind, hence the third party. He was out of state all this week, so I have not been able to get the info to answer your questions above but will be posting with that information within a couple of days. Thank you for your help

 

[Ohiogal]

The contract states the loan is at 3% interest, due on the 10th of each month and $35 late charge. But the boyfriend has continually been running 2 months behind then will make a payment preventing Jim from starting foreclosure proceedings. It is our understanding that if he is in 3 months arrears then we can start foreclosure proceedings but he just keeps the payments 2 months behind. Is there anything Jim can do at this point? And should he become 3 months behind and makes a partial payment rather than the full 3 months he owes, can Jim refuse that partial payment and continue with the foreclosure ? Thank you.

He needs to have an attorney review the contract to make sure it is enforceable as a purchase contract (was it filed with the recorder's office). There are many issues I can see with this situation that requires an attorney who knows real estate law to review the contract.