Is Thirty Days, Thirty days?

egyptcrossarabs · Joined: 02 Apr 2008 Posts: 2 1.75 Dollars($)

I have a loan with a hard equity lender and they insist on payments no later than 30 days. I am currently late, but not 30 days. Can they legally refuse a payment or insist on two payments prior to thirty days?
Last month they insisted on an earlier payment than I could make and sent the check through my account even though I told them when my direct deposit went in the bank. It put me in overdraft and I am still not out of that mess.

larry · Joined: 27 Jun 2007 Posts: 3051 428.03 Dollars($)

Hi egyptcrossarabs,

Welcome back.

Your lender cannot refuse the payment though you may still have to pay the late fees as you are late. But it should not be reported on your credit if you can make the payment before 30 days late.

You can better submit a letter of explanation to the lender for being late.

Best of luck,
Larry

Caron · Posted: Tue Apr 15, 2008 3:54 am Post subject: RE: less than 30 day late payment

Usually lenders report late payment to the bureaus for each 30 day late pay. Even if a lender does report less than 30 day late pay, it will have a minimal effect on your score. Now, coming to your query, well, a late pay is a late pay! So depending upon your state laws, the lender may refuse the payment and ask you to modify the loan. But they shouldn't ask for two payments if the contract doesn't say so. Read through your loan contract and if it's not there, you can remind the lender that he's supposed to take only one payment on a monthly basis.

Good luck

0.10 Dollars($)

I called the woman in charge of collecting the payments yesterday...this is a small local company...and she said Fri. is fine? Since my husband was hurt and out of work for several month's in spite of our best intentions, I have had to pay this late...not more than thirty days, mind you. Everything is out of my paycheck even now that he is back to work part time.
I guess her response depends on if she is having a good or bad day? We got this loan to rid ourselves of a first and second loan we had on this place from pedatory lenders...at least one was.

Samantha

Have you been in late payments before on the same loan? If it's so, then the lender may not agree to accept a less than 30 day pay. It actually depends on how the lender takes it into account. But he cannot report it to the credit bureaus until and unless it is a 30 day late payment.

Hope this helps.

May god bless you.

Samantha

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