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trouble with note holder.

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My holder of my first is a private citizen. They are been VERY rough... One day after my payment is due they send me an email saying I am in Default and the entire note is now due and payable, if they demand. BUT, I have a ten day grace period. I do not believe I can be in default during a grace period. and what they are doing is a breach of the contract.
 

Zigner

Senior Member, Non-Attorney
it may not be a breach, but are they wrong to say I am in default when I am in the grace period
They may be (it depends on how your contract is worded). It could be argued that you are in default, but that the lender has (contractually) agreed not to take action on the default during the specified grace period.
 
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...... Is it not a contradiction to be in default and in the grace period at the same time.
 

LdiJ

Senior Member
i guess what i am asking can they call in the note during the grace period...........It keeps my wife and me up at night.
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, then you need to run it by a local attorney for a contract review. That is not something that we can do here.
 

Zigner

Senior Member, Non-Attorney
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...... Is it not a contradiction to be in default and in the grace period at the same time.
Please take your agreement/note/contract to a local real estate attorney who can review the entire document and advise you accordingly. Contract review is beyond the scope of this (or any) internet forum.
 

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