Let them have or fight?

[realhelp]

What is the name of your state (only U.S. law)? Texas

3 years ago, I purchased an investment home. There were title problems which I was told would be resolved but it would take some time so with $5000 down and 8.25% interest the "property co" owner financed for 5 years at which time I am to get other financing and the title problem would be fixed. Now I am being told they are considering foreclosure because the payments were not received by the due date and they are saying Sept. payment was not made so I have been in default since Sept. and now my loan balance is more than when I originally got the "loan". They are offering to refinance the loan and add $3000.00 to it to make up my "deficiancy". They do have 11 payments this year and this is November. Is there anything I can do?

 

[FlyingRon]

I'm confused as to the nature of the title problems or how they are getting fixed. Generally one doesn't take ownership of a property without clear title or some sort of sure bond that it will be clear. I suspect you were unable to get title insurance which was equally a bad idea.

The question as to foreclosure is whether indeed you are in default. If the payments are not made this is something you certainly can fight if they bring the foreclosure action. Being consistently late will increase the interest due but generally doesn't put you in default (were you late?).

i'm confused how the loan balance can be more than the original amount unless they are adding in all the remaining interest payments that have not yet accrued. If you have proof that the payments were made I'd counter their letter that you are not in default and fight them if they start any adverse action (not just foreclosure, but negative credit reporting).