A promissory note is not the end of the world. It will take a lot of work on their end to collect from you.
If the lender forces you to sign a promissory note, one viable option is to sign it and never make a payment. Here is what we recommend that you do to avoid paying the promissory note.
It takes time for the lender to move your file out of the collections system. This will last for anywhere from 1 month to 6 months.
The rest of this post is simply my opinion. It is not legal advice. I am just telling you what I would do if I were in this situation with no money or the income to make payments on a promissory note.
Simply tell the debt collectors that you are trying to avoid bankruptcy. Do not give them any more information! Don’t dispute that you owe them money.
And definitely don’t agree to pay them anything, or tell them that you might be able to pay them. In my opinion, you are better off just hanging up on any collector that calls you.
Anything you say can and will be used against you. This is why you are better off not saying anything. After a while the phone calls and mail will stop. Hopefully you will never hear from your lender again.
In order for the lender to get you to pay, they will have to garnish your wages or your bank account.
That isn’t easy to do. There are many legal defenses you can use to stop them from garnishing your wages. One short sale home owner had an unpaid credit card that was trying to garnish her wages.
Here is what she did to stop the garnishment. She was in Florida and Florida law stipulates that if someone has children living in their home, then a creditor cannot garnish their wages.
She had a daughter that lived with her, found the rule, and stopped the garnishment. There are many other strategies you can use to stop garnishments. Talk to a lawyer as they will know the different ways you can stop a garnishment under California law.
Now for one last strategy to stop a garnishment: Protesting. Yes, that’s right. Stand out in front of the local bank branch. Hold up a sign telling your story. Just make sure your sign appeals to most people driving past.
In most cases, the lender will stop the garnishment. They don’t want the bad publicity. I know someone who threatened a large national bank with protests.
A Vice President of the bank called them a few days later and resolved the situation. This is all based on one simple thing. A bully always picks on the weaker victims.
Sure they will beat up on little kids. But, there is always one little kid who fights like crazy. They use whatever they can to defend themselves against the bully.
In the fight the bully gets hurt. Maybe not bad, but they get hurt nonetheless. Next time they are looking for a victim are they going to beat up on that little kid?
No. They’ll find another victim who won’t put up a fight. Very few people fight. They just pay the lender. That’s why the few people that do fight often get preferential treatment.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at Tony@HunthausenGroup.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 714-334-7808
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Huntington Beach loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Tony Hunthausen.
Tony is a Real Estate Broker Associate at Remax Select One. Huntington Beach Short Sales Realtor:
Phone: 714-334-7808. Tony@HunthausenGroup.com.
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View My homes for sale at www.SellingHuntingtonBeach.com.
Tony Hunthausen specializes in loan modification assistance and short sales in Huntington Beach California. Huntington Beach Loan Modification Help, Huntington Beach Short Sales. Huntington Beach Short Sale Realtor , Short Sale Realtor. Huntington Beach CA Short Sales. Huntington Beach Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Tony Hunthausen’s personal views and do not reflect the views of Remax Select One.
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