Mortgage Release

[cathymc]

The mortgage holder on our business was the former owner. We closed on a SBA loan on Oct. 13, mortgage payment to old holder due on the 15th. He accepted a cashier's check from the bank for the agreed upon payoff. Signed the mortgage release and left the bank. Returned to the bank and said the check was incorrect and wanted the relase back. Bank wouldn't give release back, so he took his check and left again. Called me and wanted another payment. I offered to settle with him for the principle only for one month to avoid litagation he was threatening. He wanted the entire month's payment, interest and all. Because it was 2 days from when the regular payment was due. I refused and now have been served with small claims court papers. What are my chances? Should I take a lawyer? Can I handle this on my own, I have all necessary
documents? Does he have any recourse?

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by cathymc:
The mortgage holder on our business was the former owner. We closed on a SBA loan on Oct. 13, mortgage payment to old holder due on the 15th. He accepted a cashier's check from the bank for the agreed upon payoff. Signed the mortgage release and left the bank. Returned to the bank and said the check was incorrect and wanted the relase back. Bank wouldn't give release back, so he took his check and left again. Called me and wanted another payment. I offered to settle with him for the principle only for one month to avoid litagation he was threatening. He wanted the entire month's payment, interest and all. Because it was 2 days from when the regular payment was due. I refused and now have been served with small claims court papers. What are my chances? Should I take a lawyer? Can I handle this on my own, I have all necessary
documents? Does he have any recourse?<HR></BLOCKQUOTE>

You win. If the business involves real estate make sure the Release of Mortgage is recorded on title.
If not take a copy to court to prove that the deal is done, the goose is cooked and he can eat crow.
If you want to take a lawyer that is ok, you will just pay him/her for laughing at the circumstances.