Legal Question in Real Estate Law in California
IA secured note specifies an interest rate, specifies that payments include principal and interest, and further specifies that interest is to be paid on unpaid balance only. Apon amortization of the note it is discovered based on schedule of payments and amount of payments required the principal would be paid off seven months before the scheduled payments end resulting in a windfall of thousands of dollars to the beneficiaries. Is this a valid note?
2 Answers from Attorneys
I am fairly sure you do not understand something about how the interest is charged on the unpaid balance resulting in an incorrect amortization, but in any case, the note is valid. Without reviewing the actual documents I cannot tell you what if any parts of the note might not be enforceable, but the basic debt due would most certainly survive. Now you have asked this question a half dozen times or so and have received pretty much the same answers every time. If you don't like what you hear here, or want an actually definitive answer, take the paperwork to a real estate attorney in person and ask your questions.
The note is valid, it just gets paid off early, if your interpretation is correct. I agree with Mr. McCormick, take the thing to a real estate attorney and have it reviewed.
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