Consumer Law, Warranties ajcubed

[ajcubed]

I am not sure what to do. 3 years ago we used our second home as collateral to open a new business. The amount borrowed was 400K. To date we have paid 200K in interest. The business is failing and we are one payment behind with the lender. The monthly payment is 7K. The lender has sent a letter threatening to expediate the loan. We are current on our primary mortgage company. What are my options? What happens if I cannot make the payment? Thanks.

 

[Michael Wechsler]

I am not sure what to do. 3 years ago we used our second home as collateral to open a new business. The amount borrowed was 400K. To date we have paid 200K in interest. The business is failing and we are one payment behind with the lender. The monthly payment is 7K. The lender has sent a letter threatening to expediate the loan. We are current on our primary mortgage company. What are my options? What happens if I cannot make the payment? Thanks.

I'm sorry to hear about your situation. Your agreement will say what happens if you fall behind on payments. What will actually happen is what you can negotiate with your lender. Perhaps telling him that trying to get blood from a stone won't help and hopefully you can work things out, especially given your spotless record before this challenge. You understand their position, etc. Relationships definitely help although your options are limited. Read the text in your agreement and good luck.

 

[ajcubed]

Thank you very much. I am meeting with a local attorney tomorrow to discuss the situation and go over options. Thanks again.