QUESTION
Private lender refusing to give an accurate pay off
Asked on Aug 24th, 2017 on Real Estate - California
More details to this question:
I have attempted 3 times in the last year to get a payoff from my private party lender they have refused to abide by the law that states I am to have a payoff within 21 days of them receiving it this is the third time I have tried to get a payoff amount I paid $157,750 for my property I deposited a $20,000 cashiers check into the woman's account bringing my property purchase in my records down to 137,750. Today my lender got a verbal payoff amount of $191,000 still not a written amount but there is no possible way I owe $191,000. I purchased this property three years ago from my then landlord at the time of 13 years ever since she's gotten older and her sons have taken over in the last couple years it has been a disaster and Nightmare to deal with them they refused to give me a 1099 to write the interest off on my taxes every year I have never gotten a statement of my account I have never gotten a 1099 and now they're trying to say I owe 191 for a piece of property that I purchased
1 ANSWER
If you hired me, first I would send her a letter enclosing a spreadsheet showing the original amount, the interest, and all the payments, and how much you believe you owe her, and a certficate for her to sign confirming that payoff amount. I would cite the statute which requires her to comply.
If that didn't work, I would send a letter threatening to sue her, and asking her to explain why she is not responding.
Next, I would send a letter suggesting mediation as an alternative. If I sue, the court is going to require a settlement conference, anyway, so why not do that first, before both sides spend a lot of money on legal fees.
If that doesn't work, then you will have to sue her.
If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business.
Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need.
Dana Sack
Answered on Sep 13th, 2017 at 11:37 AM