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Remodeling contract, $15,000.00. Did the work. Owner agrees, in writing, to pay the last $4,100.00 in 10 monthly payments. ($410.00 a month). You guessed it. The deadbeat hasn’t paid a dime in three months. Sent a certified letter informing him he was in default and demanded payment in full. Deadline was the 8/23…………..nothing.
Well, getting paid WILL happen. No problem. Either lein or Small Claims, havn’t decided…….
What I want to know is since it was an installment agreement and he defaulted, can I report this to the credit bureau? and
How do I do it?
Never been at this place before and will not return……I just have to keep repeating…”I am not a bank!….”
Thanks guys.
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Mark,
I guess no one's been there done that.
I'd talk to your bank. They may know the where and how and if you can's.
Man I hate a cheat.
Try anything but a law suit. Only the lawyers win in that situation.
Good Luck,
Ed.
*Actually Mark, being a bank is not all that bad.I'd probably want to talk to a lawyer about this one. And do it fast. You kinda goofed in the original deal. At that time, you should have secured a second mortgage. That small $4100 loan could be earning you substantial interest and be well secured by the property. If he doesn't pay, you would be able to foreclose. Without the mortgage, you can only place a lien. If the guy never sells, you'll never collect. He can even place 10% in escrow and dispute your claim.Next time, have the homeowner give you a second mortgage. Be sure to charge a much higher interest rate to offset the potential added risk. 12% minimum, but check your state usery laws. And don't be afraid to up your selling price because of your "in house" loans. Most of the larger remodeling companies make huge additional incomes because of this "added value". Here's how I'd make the deal. I'd sell/offer the deal at $20k with only half down and the balance financed at 12%, amortized at 10 or 15 years. I'd record the contract and enjoy the income stream of 1200 per year. It wouldn't take long to make up that 4100 shortfall! And who would your competition be if the buyer needs private financing? Do you think many carpenters would be willing to do the job for the 10k cash? Or could he have found others to finance the deal? Be the bank. Theres a lot more money to be made. Incidently, if you need the cash, you could always sell your mortgage on the aftermarket. If the guy has decent credit you could probably get up to 90 cents on the dollar.blue
*"Be the bank. Theres a lot more money to be made."Dang! I knew there was better way to make a living.Hey Blue, does this mean I can start work at 9:00 am?Good points blue.......good info too.
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Remodeling contract, $15,000.00. Did the work. Owner agrees, in writing, to pay the last $4,100.00 in 10 monthly payments. ($410.00 a month). You guessed it. The deadbeat hasn't paid a dime in three months. Sent a certified letter informing him he was in default and demanded payment in full. Deadline was the 8/23..............nothing.
Well, getting paid WILL happen. No problem. Either lein or Small Claims, havn't decided.......
What I want to know is since it was an installment agreement and he defaulted, can I report this to the credit bureau? and
How do I do it?
Never been at this place before and will not return......I just have to keep repeating..."I am not a bank!...."
Thanks guys.