[quote frenchlambda]What exactly would make the note callable?
Doesn’t the deed of trust make it callable?[/quote]
Wording in the note stating that the lender can back out and demand their capital (outstanding balance including any outstanding interest due) at will and at any time. The deed of trust does not make it callable. It just makes the loan secured by the property.
[quote frenchlambda]By the way, both my ex-wife and I signed the deed of trust. I refused to do so at the beginning because my wife was refusing to sign the “stipulation and order” document. [/quote] Of course she would sign the trust deed.. It helps her and her parents. From what I have seen of the “marriage settlement” posted earlier, she dumped it all on you.. the underwater property and all of the liabilities. She should have shared in the liabilities because they were part of the community property.
[quote frenchlambda][quote ucodegen]Was the “stipulation and order” part of the divorce agreement?[/quote]No, it was not. And neither was the deed of trust. Before even reaching the final agreement, I signed the deed of trust while my ex signed the “stipulation and order”.[/quote]
It should have been, particularly with how much you spent on the whole proceedings, including the restraining order. Considering that you were divvying up the marriage assets, it all should have been part of the “marriage settlement”. The note associated with the deed of trust should have been modified by the minimum of the $85k.. resulting in an outstanding balance of $200,000 – $85,824.49 or $114175.31 — making refi much easier. Have you yet received the $85k?
[quote frenchlamda]I called my ex-wife’s mom and she told me that the note clearly specifies that the $200K must be paid by September 3rd and that they gave us a 5-year loan.
The whole part in the “Straight (Balloon) Note” section of the note completely confuses me.[/quote]
As your supposed exact copy of the note reads, it doesn’t. But this is one of those things were the wording is VERY important. One word added or omitted from the wording can change the meaning.
[quote frenchlamda]I forgot to mention the following clause as part of the promissory note:
“Should default be made in payment of principal and/or interest when due, the whole sum of principal and accrued interest shall become immediately due, without notice, at the option of the holder of this note.”[/quote]
VERY IMPORTANT – like I mentioned above, wording is critical. This makes the note callable on default. Notice that the wording states “shall become immediately due” with the condition of “Should default..”. Are you current in the payments to the ex-in-laws?
So far, I have found nothing that makes them able to foreclose, but I am concerned that you are omitting something… the paragraph you ‘forgot to mention’ is incredibly critical.
Is the mortgage document with the in-laws written in English or French?
