Mortgage interest problems with owner finance

[sweetpeeps]

What is the name of your state? North Carolina
Hello thank you for taking the time to read this. We bought a house in North Carolina almost two years ago through owner financing. We got a interest rate of 8% but if we were to default on pymnts or go past the two year mark to get a loan from a bank then the rate was to balloon to 12%. We have been late on some pymnts but he charges us 12% on the whole loan amt for the late pymnt and according to Chapter 24 in the NC statutes he can only charge 4% on the regular pymnt not 12% on the whole loan amt. So to give you a better look at what the problem is our regular pymnt is 698.54 and when he charges the 12% interest the pymnt is 979.97 by my calculations we should only be paying somewhere around 714.00 on late pymnts. We have always paid that amount because if we didn't he threatened to foreclose on our home, we obviously do not want that. I am currently trying to refinance on the outstanding balance but I believe the balance should be less considering we paid over. I want to be civil about this and just want to have everything be fair to him and our family. What kind of papers should I send or should I even bother? Am I being to stingy?

Thank You

[pojo2]

Originally Posted by sweetpeeps

What kind of papers should I send or should I even bother? Am I being to stingy?

Thank You

Why not take this issue up with the Atty you had look over this contract BEFORE you signed it?

We can not see the exact contract you did sign and excerpts are really of little use in answering your questions/

[seniorjudge]

Originally Posted by sweetpeeps

What is the name of your state? North Carolina
Hello thank you for taking the time to read this. We bought a house in North Carolina almost two years ago through owner financing. We got a interest rate of 8% but if we were to default on pymnts or go past the two year mark to get a loan from a bank then the rate was to balloon to 12%. We have been late on some pymnts but he charges us 12% on the whole loan amt for the late pymnt and according to Chapter 24 in the NC statutes he can only charge 4% on the regular pymnt not 12% on the whole loan amt. So to give you a better look at what the problem is our regular pymnt is 698.54 and when he charges the 12% interest the pymnt is 979.97 by my calculations we should only be paying somewhere around 714.00 on late pymnts. We have always paid that amount because if we didn't he threatened to foreclose on our home, we obviously do not want that. I am currently trying to refinance on the outstanding balance but I believe the balance should be less considering we paid over. I want to be civil about this and just want to have everything be fair to him and our family. What kind of papers should I send or should I even bother? Am I being to stingy?

Thank You

Didn't you sign the mortgage agreeing to all this stuff?

[sweetpeeps]

We are from another state other than NC, we didnt know what NC satutes stated, and isn't that the job of our atty to know that you cant charge that kind of interest rate when NC statute states otherwise. We arent lawyers thats why we hired one so these kinds of mistakes arent made. I guess all I need to know is does the statute override the contract, I mean that is why they are made right?

[Ciarraine]

Originally Posted by sweetpeeps

We are from another state other than NC, we didnt know what NC satutes stated, and isn't that the job of our atty to know that you cant charge that kind of interest rate when NC statute states otherwise. We arent lawyers thats why we hired one so these kinds of mistakes arent made. I guess all I need to know is does the statute override the contract, I mean that is why they are made right?

Get to a title attorney, have them look at it, ask them to recommend a subprime lender who can help you out, and close on the house and be done with the owner financing.

[bdancer]

I may be misinterpreting your post, but could it be the NC statute covers LATE fees, while your contract allows the interest rate to increase to 12% -- several late payments could be considered being in default. In other words, your interest rate is 12% not 8% now.