Q: Borrower late 2 installments,$1,000.00, vacant lot in Florida, balance $4,300 . Sue small claims, accelerate, foreclose?
3 installments made $1.500.00. May 1 and June 1 installments are due, May over 30 days late. A vacant lot in Florida. 1 returned check but remedied. Promises to send check so far no action. I would like to accelerate the loan, call it all due and payable as the clause in the note states or a small claims action and judgment or the lengthy and costly foreclosure process. Suggestions.? Thanks
A: If I'm understanding you accurately, you wish to collect a delinquent loan, perhaps secured by real property. Small claims jurisdiction is for claims not exceeding $5,000, but it doesn't allow for real estate foreclosure. So yes, you could file a small claims case. You probably should see an attorney.
A: If the borrower is bouncing checks and making excuses, they are likely to be judgment proof, so you would want to foreclose. If you simply get a money judgment and they don't have funds to pay, you will have to foreclose the judgment lien against the property to get paid anyway. If the loan documents are properly drafted, the attorney fees and costs would be added to the judgment amount and if the property value is less than the total due, you can always get a deficiency judgment for the difference.
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