QUESTION: Sir John, we bought a house and lot at 5 years amortization. Upon reaching the 14th monthly payment, I lost my job and we were no longer able to pay the 15th month to 18th month. We received a Notice from the seller to pay immediately the WHOLE BALANCE! Is this legal?
ANSWER: Most likely, YES. Look at the Contract to Sell and check out if there is any ACCELERATION CLAUSE.
ACCELERATION CLAUSE – A clause in a contract stating that upon the happening of a certain event, like a BREACH or failure to pay any installment due shall make all the balance become immediately due and payable.
BREACH – The breaking of a law, or failure to perform a duty or obligation specified in a contract or agreement, or revelation of secret, either by omission or commission.