Posted on: 21st Sep, 2009 09:43 am
Hello Cliff:
I am in Indiana, about one and half years ago, I purchased two houses and rehab them using hard lending money from a guy. The notes where for about $30k each, to be paid 4 and 6 months after the note dates. After that each one had a late penalty of about $1,000 per month each and the interest payment went to 24%. Now each property is worth about $75k each, but the debt after late fees and interest are close to their value (market value, not wholesale value), so I am planning to just lets them go and do deed in lieu. Is that my only option?, I mean is it legal to charge those late fees and high interest rates?. If so, please let me know if the lender (hard lending guy) has the option to suit me for the difference in case he sales them. Also, please let me know if after the deed in lieu, I will be completely out of any responsibility concerning those properties and notes.
I thank you very much for your help.
I am in Indiana, about one and half years ago, I purchased two houses and rehab them using hard lending money from a guy. The notes where for about $30k each, to be paid 4 and 6 months after the note dates. After that each one had a late penalty of about $1,000 per month each and the interest payment went to 24%. Now each property is worth about $75k each, but the debt after late fees and interest are close to their value (market value, not wholesale value), so I am planning to just lets them go and do deed in lieu. Is that my only option?, I mean is it legal to charge those late fees and high interest rates?. If so, please let me know if the lender (hard lending guy) has the option to suit me for the difference in case he sales them. Also, please let me know if after the deed in lieu, I will be completely out of any responsibility concerning those properties and notes.
I thank you very much for your help.