Owner Loan

[Cristina03]

What is the name of your state?Wisconsin
Two years ago I bought my first home. In order to make the down payment, the person selling the house loaned me the money.
At the time of closing, the contract was signed by both parties and notarized.
9% interest over 5 years.
Since then my payments have been of $86.12 once a month. I sent them regular mail. There were months he chose not to cash the check, other months he waited two weeks to do so.
Recently, he has decided to break the contract by asking for the whole amount of the loan. I certainly cannot come up with three years worth of payments in one month. Although I would love to get rid of any more contact with this person, refinancing has been difficult because of a lack of comparable homes selling in the area in the last year.
What should I do?
Can I re-negotiate the contract?
How can I make sure he follows through with his part by cashing the check, since sending it to him on time is apparently not worked?
Thank you for your help.

 

[JETX]

What should I do?

Why should you do anything?? There is NO obligation to comply with his wishes. Simply, continue to make payments as required by the contract. If he wants immediate payment, tell him to sell HIS 'extended pay contract' to someone who wants to buy it.

Can I re-negotiate the contract?

If all parties agree to any new contract terms, of course the contract can be altered or even terminated and replaced by a new one. But why would you even consider such a thing??

How can I make sure he follows through with his part by cashing the check, since sending it to him on time is apparently not worked?

Just keep sending him the checks. Might not hurt to make record of the check and date sent. As long as you send him the checks and they are honored by your bank on presentation, no problem. Simply, don't go out and spend that money just because the check didn't clear when you expected it to. Always, ALWAYS leave enough in the account to clear the check.