Trouble Collecting On Second Note... - Posted by Jack-NY

Posted by Ben (NJ) on October 01, 2000 at 05:10:39:

you can post notes for sale for free with some boards, such as America’s Note Network. You will have to accept a discount but at least he will be someone else’s problem.

Trouble Collecting On Second Note… - Posted by Jack-NY

Posted by Jack-NY on September 30, 2000 at 21:23:58:

I have a small second note [$8k] this note is 1 year old. This note payor has been late for the last year every month. It’s to the point that I have to personally phone him every month to get my payment. I have send him letters, and spoke to him in person and this appears to go in one ear and out the other one. I have not turned him into the local credit reporting agency yet. What should I do? he pay’s but always late.



Re: Trouble Collecting On Second Note… - Posted by Ron Ohara

Posted by Ron Ohara on October 27, 2000 at 03:08:41:

If the note secured by Mortgage is on a property in New York, then foreclosure will be a long drawn out process. If foreclosure is what you are looking at, then let’s look at what you have for now: 1) what is the amount of the first mortgage on the property and determine what equity is in the property; 2)Contact either the Trustee or attorney to see what the upfront cost is to begin foreclosure (be sure to ask for the total costs and time period for the foreclosure).

In trying to sell your note. Since the balance on the Note is so small, you will probably take a big “hit” and even bigger since the payments do come in late. What a buyer of the Note will be looking for, if there is a lot of equity in the property, he/she may take the chance of buying the Note to begin the foreclosure.

If your note currently does not have a “late charge” clause in it, you cannot randomly charge one. If there is one, by all means, charge it to your buyer.

One last suggestion, discount the balance of the Note and bring that price to your payor to see if he/she wants to pay it off at the discounted price. This will release you of time after time headaches and may be well worth it to you.

Ron Ohara
Capital 500 Funding

Re: Trouble Collecting On Second Note… - Posted by K greene

Posted by K greene on October 02, 2000 at 18:49:00:

I was in a deal similar to yours for eight years and he to not once paid on time. I said great because I had a 10% late fee. Pull out your calculator and do the yield on one payment that is late. After you get your answer you will not mind as much, in fact you will like when he is late.

Re: Trouble Collecting On Second Note… - Posted by Sean

Posted by Sean on October 01, 2000 at 08:27:01:

Does the note have a clause for late fees? If it does, start assessing them. How is your equity position? Would you feel comfortable if you had to foreclose?