Help with contract for deed

[dkjmom]

What is the name of your state? IL

I entered into a contract for deed in Nov. 2005. I have been current with my payments up until May 2006. The owner wants to "refinance" the contract and charge an interest rate of 32%. With the missed payment from May, late fees for May and June, taxes and the interest the amount comes up to be like I'm buying the place all over again. What is the limit on the interest that can be charged?

 

[efflandt]

What did your contract say would happen if you did not live up to your terms?

Illinois discontinued usuary limits in 1981 when inflation was running away (when CD's were paying 10% and normal mortgage rates were 10-15%). So the limit is now whatever you are willing to pay (or finance elsewhere). Interest rates over 30% are common for sub-prime car loans, or if you default on a credit card (or miss other payments on your credit record). So it pays to live within your means and take extraordiary effort to make payments when due.