How do I forclose? SCB note California property..

[Tony F.]

I sold a property beginning of last year. Received about 50% down, remaining 50% seller carry back in 1st position, structured into 3 equal balloons (due after 3 months, 9months and 24months), Interest accrued and paid at time of 1st and 2nd balloons then paid monthly for period after 2nd balloon.

Buyer paid 1st balloon and interest.

Buyer paid 2nd balloon partially (short about 100k including interest), now we are 7 months past that due date...

No interest has been paid since.

Can I forclose now? How do I do it? My attorney saying I need to file some notice to buyer 150days before the balloon is due stating upcoming balloon, and that since I didn’t do this, I should do it 150days before next balloon is due, then if he still hasn’t paid forclose.

Seems odd to have to wait until he misses another balloon, especially since he isn’t making interest payments monthly as agreed upon... there is plenty of equity now in the property to pay off not due to me.

[Chris Mason]

Originally posted by @Tony F.:

@Jay Hinrichs

K thanks. This 150 day thing is news to me.

What if the balloon is due 3 months from close of escrow (as was the case here)? Not 150days available between ballon date and close

 The law trumps your contract. You should do whatever your lawyer says and the lawyer's legal guidance trumps anything posted on an internet forum, but I'm guessing the procedure there would be to give that 150 days notice right there at the closing table along with all other loan docs. The 3 months would be unenforceable, but 150 days would be.

A bunch of California real estate has "white people only" right on the deed, but it's unenforceable. A state law duly enacted by the state legislature and signed by the governor can say "no abortion," but it's unenforceable because federal trumps state. A bunch of leases in Berkeley, California, say "no rent control and landlord can kick you out without reason with 30 days notice," but ordinances trump that too. This is like that, you can write whatever you want, it'll just be unenforceable.