Prommissory Note

[Uotay]

What is the name of your state? GA

On Nov 5, 1992 I entered into a lease purchase on a restuarant. I did not have the 85k down payment so the owner and I agreed on a note for the 85k. I did not have a morgage at the time so they agreed to hold a 1st mortgage on my home as security for the 85k.

This is the agreement we had on the note. 0 payments, 0 interest with these statements in the body of the note:

(Upon default of the makers of this note on the terms and conditions of a lease agreement entered on this 5th day of November, 1992, the holders of the within note shall have the right to foreclose on the security for this note in accordance with the agreements between the parties as set forth in the lease agreement. This prommissory note shall be due and payable on the 1st day of October, 1995. In the event that the lease agreement is still in full force and effect, and in the event the makers of this note have not defaulted on the terms and conditions of the lease agreement, the makers shall not owe to the holders said sum. However, the makers of the note shall renew said note as a security deposit in favor of the holders of the note. Failure to renew said note shall act as a default, entitling the holder to foreclose on the security.)

Based on the paragraph in bold I was led to believe that I did not owe anything and the note was paid in full because I was always current on the lease payments which were 8,100 per month, but I don't understand the last paragraph. The holders are threatning to sue me for th 85k.

Any advice would be greatly appreciated.

[seniorjudge]

Originally Posted by Uotay

What is the name of your state? GA

On Nov 5, 1992 I entered into a lease purchase on a restuarant. I did not have the 85k down payment so the owner and I agreed on a note for the 85k. I did not have a morgage at the time so they agreed to hold a 1st mortgage on my home as security for the 85k.

This is the agreement we had on the note. 0 payments, 0 interest with these statements in the body of the note:

(Upon default of the makers of this note on the terms and conditions of a lease agreement entered on this 5th day of November, 1992, the holders of the within note shall have the right to foreclose on the security for this note in accordance with the agreements between the parties as set forth in the lease agreement. This prommissory note shall be due and payable on the 1st day of October, 1995. In the event that the lease agreement is still in full force and effect, and in the event the makers of this note have not defaulted on the terms and conditions of the lease agreement, the makers shall not owe to the holders said sum. However, the makers of the note shall renew said note as a security deposit in favor of the holders of the note. Failure to renew said note shall act as a default, entitling the holder to foreclose on the security.)

Based on the paragraph in bold I was led to believe that I did not owe anything and the note was paid in full because I was always current on the lease payments which were 8,100 per month, but I don't understand the last paragraph. The holders are threatning to sue me for th 85k.

Any advice would be greatly appreciated.

triple post

[pojo2]

Have all the payments now been made on the lease/purchase?

Consult an Atty who can go over the ENTIRE document you signed for an accurate answer.

Might want to do that before they decided to do something with that lien on your home.