Posted on: 06th Mar, 2011 10:22 am
What is the max interest rate that can be charged by the seller on the loan when seller is financing? Can interest be charged on the late fees?
Hi Guest,
It will depend upon the seller as to what interest rate he will charge on seller financing. Normally, the seller will charge the interest rate as going on in the market. The sellers, generally, do not charge interest on late fees.
It will depend upon the seller as to what interest rate he will charge on seller financing. Normally, the seller will charge the interest rate as going on in the market. The sellers, generally, do not charge interest on late fees.
I bought a property from a man in california. It was a seller financed deal secured by a deed of trust. the late fee says $20 a day plus 10% of the payment. It seems like a loan shark to me. After 2 months of payments are due I am paying a compound of two $20 a day payments and so on. Is this illegal?
Hi xtoner!
Welcome to forums!
In a seller financed deal, both you and the seller decide upon the terms and conditions of the deal. You should have read the documents before you signed on them and could have objected to it then and there. I don't think that the terms and conditions of the deal will be considered as illegal. Nevertheless, you should contact an attorney and take his opinion in this matter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In a seller financed deal, both you and the seller decide upon the terms and conditions of the deal. You should have read the documents before you signed on them and could have objected to it then and there. I don't think that the terms and conditions of the deal will be considered as illegal. Nevertheless, you should contact an attorney and take his opinion in this matter.
Feel free to ask if you've further queries.
Sussane