Late Payments - what would you do?

[Flyin G Farm]

I have a horse sold on payments. The horse has not left my possession. I do have a contract in place with payments due the 15th of each month, with a 5 day grace period. 2/3 of the payments I have had to send reminders of the last day in the grace period. So here we are, the 19th, and still no payment. I don't feel it is my responsibility to send reminders every single month, should I? And of course tomorrow is Easter, so not likely Western Union (the method of this person's payment) will be open. I'm running out of patience for sending reminders to someone who puts off an "I could care less my payment is late" kind of vibe. I feel like just sending something Monday letting this person know if the balance in full isn't due immediately (because the payment wasn't received within the terms of our contract), the horse will be back up for sale. Am I out of line?

I really hate being the "bad guy" but I really don't understand people getting into contracts where they are setting the terms that they say work for them and then not following through, with no reason as to why. I get that sometimes things happen, and as long as the buyer communicates with me, I am more than happy to be flexible and try to figure something out. But this is not the situation for this particular horse. Ugh...it is really hard to want to continue offering payments sometimes

 

[Mona]

Along with the terms of the contract that outlines the date that each payment is due, it should also be stated what the consequences will be if the payments are not received within so many days of that date. If it's spelled out nice and clear, then let the contract do it's job....no need for you to babysit and sent reminders. Just take action when the terms are not fulfilled as per the terms of the contract.

 

[Flyin G Farm]

Thanks Mona, that's how I'm feeling as well. The contract is clear that all payments will be forfeited and the contract will be void if any payment is not received by the 5 day grace period. I just really hate having to be the "bad guy"...it's unfortunate it comes with the territory!

 

[Minimor]

Yep--if your contracts states that the deal is void and payments are forfeited if the buyer misses the grace period--then just let the contract do its job. I do t k ow if I would even send a "pay in full or the deal is done" message unless that is specified in the contract.

 

[Minimor]

You are not the bad guy--buyer has only herself to blame if she can't follow the terms of the contract. If money is short she should have contacted you and asked for a few extra days, not just ignored you.

 

[Marsha Cassada]

Would such a careless buyer be an appropriate owner for your horse? What else does he neglect, besides his lawful debt? Some people just try to see what they can get away with; I think it is like a game with them. I know of employers who wait until their employees ASK for their rightful wages. Are they making a little extra interest on that money? Hoping the employee will forget? Work for nothing?

It's hard on you having to remarket the horse. (If he is as gorgeous as your avatar horse that shouldn't be too hard!)

 

[MountainWoman]

I was thinking the same as Marsha and if this horse was really important to the person and a horse they really wanted then they would keep you up to date with what is happening with the payments. It's very nice of you to take payments in the first place.

 

[Flyin G Farm]

Thanks guys...I appreciate the support. I don't think the person is a bad home, but it's unfortunate they are very flaky about payments and just so non-chalant about the whole thing. And I'm tired of feeling like I should send reminders to get the payments, I don't feel like it should be my responsibility. I think with it being Easter tomorrow and places closed, that is where my biggest issue is, because I'm sure I'll get an "I'll make the payment tomorrow" since western union is likely closed, and I'm not sure I think that is acceptable to me after months of pushing the limits.

Thank you for the compliment Marsha. My avatar is actually the sire to the horse in question. The colt is really nice and ASPC/AMHR/AMHA, so yes, I could likely easily sell him again if I needed to

 

[Marty]

I guess I'm a schumk and I'll tell you why. A late payment wouldn't get me that much on edge anymore, I almost expect it to happen now. I don't trust the US mail for nothing. I have had so many things go wrong with the US mail for the past year it boggles the mind. I especially was at my wits end when I sent a card only across the state to find that it took 4 business days to arrive. Honestly, its embarrassing when I know I sent something such a short distance to find it hadn't reached its destination like it should have. However, If it were me. I would fess up and admit I was going to be late and let the person know on the other end which I think is just plain good manners. I don't think it would hurt a thing to make a phone call and discuss how important being paid prompt is to you. Perhaps you could suggest that they use your paypal for a way to pay on time.

 

[Tremor]

Just putting this out there, I work at a Pilot truck stop and as a manager, I get the joyous responsibility of sending and receiving Western Unions.

We were sending Western Unions yesterday and if their location was closed, there are many more open on holidays and they should have planned ahead to make your payment.

 

[HGFarm]

A contract is a contract and no, you should not be having to send ANY reminders! I would advise them this is the last time you are accepting a late payment and the last reminder you are sending also- you will take action, per what is in the contract. Dont feel bad about it, you had a contract for a reason and it apparently doesnt mean that much to them.

 

[Jean_B]

The purpose of a contract is to spell out the ground rules of the purchase. Otherwise, why bother wasting the paper? I'm a stickler for adhering to the contract. Now, if they were late once and called all in a dither hoping you would be understanding and it never happened again for a period of time until now...that's one thing. But if you continually let it slide, it's pretty worthless. I'd call in the note, tell them they aren't getting the horse and NO REFUNDS...PERIOD.... unless they make payment IN FULL by 12:00 noon on Thursday, April 24. (just an example) As Laurie said, this is a person who doesn't care about a contract...so let's see if they care about the money (or in their case, the loss of it).

 

[Marty]

Yes, I'm a hopeless schmuck

 

[Jean_B]

Here's an example of one section of my "no nonsense" contract:

1. The full selling price is $XXXX ( Dollar amount spelled out...dollars).

a. The Buyer will pay to the Seller a down payment of $XXXXX (non-refundable). Said deposit must be received by XXX 15, 2014; if not received by that date, this agreement is null and void.

b. The balance is the principal sum of $XXXXX. Payments shall be in the minimum amount of $XXX.00 per month, due on the 15th of each month, beginning on June 15, 2014. If any payment is not received by the 25th of the month in which it is due, this contract is null and void and no funds shall be returned to the buyer.

c. Final payment to be made prior to the horse leaving seller’s property. If final payment is in the form of personal check, it must be received at least one month prior to the time is picked up. If final payment is made at the time horse is picked up – final payment must be in the form of either cash, cashiers check, or money order.

d. Registration papers, stallion service certificates, and signed transfers of ownership shall be given to buyer only after receipt of payment in full and all payments have cleared the bank.

2. If any checks are returned for non-sufficient funds, this contract is null and void and no funds shall be returned to the buyer.

 

[BSharpRanch]

I am thinking that since you have been accepting late payments all along, that would modify the contract. Not a lawyer, but what I would think.

 

[Flyin G Farm]

Thanks guys. And Jean, that is basically what my contract says, it is clearly laid out what is expected and that the contract will be null and void if the payment isn't received with 5 days of the due date. My frustration is pushing the payments right up until the end of grace period that is in the contract, and feeling like the payments are only being made because I AM sending reminders of the final deadline to make the payment. The grace period is in there, so I do have to honor that, but I don't feel like I should have to send reminders every single month, but at the same time, I feel a little guilty for whatever reason by not sending reminders (Marty, maybe I'm a hopeless schmuck too!). The payment for last month was taken care of and I did send a reminder on the final day of the grace period that the horse would be advertised for sale the next day and the contract null and void. Had I not sent a reminder, I wouldn't have found out that for whatever reason, the information I needed to collect the payment was not received when the payment was made, so it also reminded me that even though I shouldn't have to send reminders, it would have saved a lot of frustration had I done it sooner.

And to clarify further, these payments aren't being mailed, they are being sent via western union, so mailing time isn't an issue.

 

[crystalsowner]

I was on the other side of things and I paid for half of a mini and had a set date when I had to pay the other half. Thing happened and I ended up being a bit late to pay. I was on the phone as soon as I knew id be a bit late and almost begging them to please have a little patients with me because I really wanted the mini. All was fine, I ended up getting my girl. But we had good communication. It is important. My question would be I made sure to keep in touch with the seller because I wanted to make sure I got my gal, because I really liked her. I question do they even still want the horse? Cause if they really did I would think think they would have better communication.

 

[HGFarm]

It just concerns me, since you have to send reminders to an irresponsible person who can't even make their own payments on time, what kind of home is the horse going to? Do they really care? I have purchased horses in the past on payments at times, and was always on time or way early with payments, as I was excited about the purchase and hate owing people and wanted the horse home as soon as possible too. The buyer here seems rather lackadaisical about it all. I dont feel that you should have to treat this buyer like a 5 year old kid who isn't mature enough to use an alarm clock and get themselves ready for school every morning. I would NOT be sending any reminders to a person who enters into a contract and then doesn't care enough to follow through.