Legal Question in Real Estate Law in North Carolina

My son, Mike is paying for a rent to own mobile home. Total price was 13,900. not including land. Paid $2000. down, financed $11.900. He is being charged 40 percent interest by the owner of the Nelsen Construction Co. who is the seller, and Mike is paying directly to Mr. Nelsen. Is this rate legal? The interest rate was not clearly stated.

thank you,

Marilyn S.


Asked on 5/21/14, 12:13 pm

1 Answer from Attorneys
Kenneth Love Ken Love Law

No, that rate is illegal. He needs to speak to an attorney ASAP. I HATE rent to own deals because they rarely go well, but the illegal interest may have given him some leverage, get him to an attorney ASAP. I have seen many of these cases and you have to get to work early to make it turn out favorably.

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Answered on 5/21/14, 12:30 pm


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