Go Back To Search Results Question Can criminal charges be pressed against me for defaulting on a secured loan? I had a horse farm that I sold due to financial issues. The buyers asked to include a tractor in the sale which I agreed thinking I'd pay off the tractor loan once I went to settlement on the property. The day of settlement I found out the mortgage company charged me a 10% penalty for early repayment leaving me walk away with nothing. I am making payments on the tractor still but no longer have it in my possession. Struggling with the large payments, I called the tractor company and asked if I could work out a lower payment plan temporarily. When they asked why I am not returning the tractor, I explained what happened. The tractor company told me they will press charges even though I am up to date on the loan. I asked why I couldn't continue making payments until it was paid off and they said I was still in default because I didn't have the tractor anymore. Is this possible and what type of charges can they file against me? By AnimalSaver Posted on 09/12/07 Total Answers 2 Answers- Theft by deception might be the charge but it is probably bluff just keep making the payments. Now to the 10 percent prepayment penalty you paid. What state are you in, check with the state concerning prepayment penalties some have disallowed them even if written into the contracts. Or limited them. 10%, although YOU signed the paperwork and should have read it is an outrage. email me if you need to and maybe I can help you find your states rules & regs. This is not a solicitation for any kind of business, just a helping hand! Answer by : Pojo On Date 2007-09-12 02:51:22 sounds like you gave them too much information, they figure since you don't have possession they don't know where to get get it at. Get a copy of your Contract for the Tractor and specifically ask them where it say that they charge for early repayment. If they don't, then go to the Mortgage Company and ask them why you were NOT notified of the early repayment (and then decide whether or not to include the tractor). They can't press charges but they can place a Judgement. Either way you need a Contract Lawyer. Answer by : Ask M On Date 2007-09-12 13:00:26   Go Back To Search Results