trouble with note holder.

[PayrollHRGuy]

I could see being in default after the grace period. but during...........

Does the contract say there is a 10 day grace period?

 

[steve luban]

Normally no, someone would not be able to call the note during the grace period. However, it all boils down to what your contract says. Therefore, you really need to thoroughly read your contact, and if you don't understand it, the you need to run it by a local attorney for a contract review. That is not something that we can do here.

thank you

Does the contract say there is a 10 day grace period?

yes

 

[adjusterjack]

should default be made in payment of any of the installement of principal or interest when due, the whole sum of the principal and interest shall, at the option of this note, become immediatley be due and payable

If that's a direct word-for-word quotation from your contract then your payment is not in default until the day after the last day of the grace period.

You are free to ignore those letters or respond, in writing, demanding that he/she cease sending them during the grace period.

If the pressure is too great you are welcome to refinance with an institutional lender.

Is this a family member that you borrowed from?

 

[steve luban]

If that's a direct word-for-word quotation from your contract then your payment is not in default until the day after the last day of the grace period.

You are free to ignore those letters or respond, in writing, demanding that he/she cease sending them during the grace period.

If the pressure is too great you are welcome to refinance with an institutional lender.

Is this a family member that you borrowed from?

Thank you......No, it is the previous owner.........cant refie at this time. prepayment is to high. to me, this is just evil

 

[STEPHAN]

It was what you agreed upon. You could have signed a different contract. Also, you could pay on time.

 

[steve luban]

It was what you agreed upon. You could have signed a different contract. Also, you could pay on time.

I understand what you are saying. but MY question is Can I be in default during a grace period. Those two things seem to be in conflict.

 

[quincy]

I understand what you are saying. but MY question is Can I be in default during a grace period. Those two things seem to be in conflict.

You are (generally) considered in default on a loan when you pay later than the designated due date. The “grace period” only means that if you pay during this period of time after the due date, you be not be assessed a penalty.

Your obligation, in other words, is to make your payment on or before the due date. Any payment made after the due date is a default.

 

[steve luban]

I understand what you are saying. but MY question is Can I be in default during a grace period. Those two things seem to be in conflict.

You are (generally) considered in default on a loan when you pay later than the designated due date. The “grace period” only means that if you pay during this period of time after the due date, you be not be assessed a penalty.

Your obligation, in other words, is to make your payment on or before the due date. Any payment made after the due date is a default.

q. but if you make the payment during the grace, you are no longer in default.

 

[steve luban]

q. but if you make the payment during the grace, you are no longer in default.

also I thought you were delinq. but not in default until after 30 days.

 

[quincy]

q. but if you make the payment during the grace, you are no longer in default.

It depends on how your loan agreement is worded but (again generally) if there is a grace period for paying on the loan, and you make a payment during this grace period, your loan cannot be canceled.