Can I sue for breach of contract?

[sheriera]

What is the name of your state? MI

My husband and I own a mobile home that we are selling to some friends, who currently live there. The mobile home is being financed, the loan is in our name, and they make the payments. The problem is, every month they are at least 10 days or more late on the payment. I know this affects our credit. The only written documentation we have of the payment arrangements states only that they are to be responsible for making them, it doesn't state anything about being on time. The question: since this is affecting our credit every month, is it legal for us to sue them for breach of contract? They also are not making the full payment each month, so they are falling farther behind. We have had this arrangement for three years.

 

[JETX]

since this is affecting our credit every month, is it legal for us to sue them for breach of contract?

Nope. In fact you have NO claim against them at all. See, the problem is you assumed liability for their payment delays when you agreed to allow them to make YOUR payments. You should have had their payments sent to you and YOU make the payments to YOUR lender.

They also are not making the full payment each month, so they are falling farther behind. We have had this arrangement for three years.

Then it sounds like the thrill and excitement of getting to foreclose on them is in your future.

 

[HomeGuru]

What is the name of your state? MI

My husband and I own a mobile home that we are selling to some friends, who currently live there. The mobile home is being financed, the loan is in our name, and they make the payments. The problem is, every month they are at least 10 days or more late on the payment. I know this affects our credit. The only written documentation we have of the payment arrangements states only that they are to be responsible for making them, it doesn't state anything about being on time. The question: since this is affecting our credit every month, is it legal for us to sue them for breach of contract? They also are not making the full payment each month, so they are falling farther behind. We have had this arrangement for three years.

**A: why is it affecting YOUR credit? Your loan papers do not state that if the property is sold and the buyer's pay late, make partial payments or do not pay at all, you can do the same with your mortgage lender. Hire an attorney to review the contract and send a demand letter out citing breach of contract etc. Threaten to foreclose if payments are not made in full and on titme.

 

[sheriera]

Ms

It affects our credit because the loan is still in our name, the trailer is still in our name, and the finance company reports to all three credit report agencies. After the other people took over the payments, the financing company sold the account to Greentree Servicing. We can't get the trailer or loan put in the other people's name because Greentree says it would have to be refinanced as a new loan, and they don't do that, they only collect, as they aren't a finance company. I know we were stupid in the way we went about this, but we needed a larger home, we couldn't sell the trailer because of it's age, and these people were good friends who did not have a history of not paying their bills (we thought). Live and learn, I guess!

 

[JETX]

A: why is it affecting YOUR credit? Your loan papers do not state that if the property is sold and the buyer's pay late, make partial payments or do not pay at all, you can do the same with your mortgage lender. Hire an attorney to review the contract and send a demand letter out citing breach of contract etc. Threaten to foreclose if payments are not made in full and on titme.

Ah, 'grasshopper'.... the reason it is affecting the OP's credit is that they didn't 'sell' the property, they just gave them a 'contract for deed' (or comparable) and having the 'tenant/buyers' make the OP's payments on their behalf.

 

[sheriera]

Ah, 'grasshopper'.... the reason it is affecting the OP's credit is that they didn't 'sell' the property, they just gave them a 'contract for deed' (or comparable) and having the 'tenant/buyers' make the OP's payments on their behalf.

Exactly right, I was hoping that we could do SOMETHING to make them be more responsible, but I guess I watch too much Judge Judy!