Background:
I owe roughly 50k on a 4br 2ba SFH 1400 sq ft, 10 years left on a a5 year note at 5%.
I sold it on an agreement for deed 3 years ago. I sold it for 95.9k on a 40 year note at 8.5%. Does not cash flow but about 80.00 a month. Equity for me is building about 50/50 equity to interest every month. Her equity is only building about 1% every month. This is important in that if she ever decided to sell I get first right to buy it back for the amount of equity she has in the deal.
She is on time 9-10 out of 12 months. About once a year I get the sob story. So far it has been:
"I was in Vegas and when I got home my ex boyfriend had stolen my cash I left at home for the payment." 1 1/2 months behind and paid the late fees when she go caught up
"I changed jobs and it will be a couple of weeks late because of the pay schedule" OK I could giver her this one
Now "somebody got my online password and drained my bank account" Sounds like total BS being this close to Christmas and all
Most of the time I forgive the late payments.
Given today's economy and fact that she has been there this long WWYD?
1. Enforce the late fees?
2. Revert her to rental status and enforce the re-instatement fee?
3. Let it slide.
I owe roughly 50k on a 4br 2ba SFH 1400 sq ft, 10 years left on a a5 year note at 5%.
I sold it on an agreement for deed 3 years ago. I sold it for 95.9k on a 40 year note at 8.5%. Does not cash flow but about 80.00 a month. Equity for me is building about 50/50 equity to interest every month. Her equity is only building about 1% every month. This is important in that if she ever decided to sell I get first right to buy it back for the amount of equity she has in the deal.
She is on time 9-10 out of 12 months. About once a year I get the sob story. So far it has been:
"I was in Vegas and when I got home my ex boyfriend had stolen my cash I left at home for the payment." 1 1/2 months behind and paid the late fees when she go caught up
"I changed jobs and it will be a couple of weeks late because of the pay schedule" OK I could giver her this one
Now "somebody got my online password and drained my bank account" Sounds like total BS being this close to Christmas and all
Most of the time I forgive the late payments.
Given today's economy and fact that she has been there this long WWYD?
1. Enforce the late fees?
2. Revert her to rental status and enforce the re-instatement fee?
3. Let it slide.
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