Right to Cure Default

We have a loan which is continually past due. Each time we send out a right to cure default they bring it current and then don't pay again until they receive another right to cure. Do we have the right to call the entire loan due or do we have to wait until the balloon note matures and then refuse to renew?

According to Wisconsin State Statute 425.105(3) you do not have to provide a Notice of Right to Cure Default “…if the following occurred twice during the proceeding 12 months:

(a) The customer was in default on the same transaction or open-end credit plan;
(b) The creditor gave the customer notice of the right to cure such default in accordance with s. 425.104; and
(c) The customer cured the previous default.

So in my opinion you can call the entire note due after the second time your customer is notified of the default and pays it up to date, assuming the customer is again in default of the loan.

The definition of default in the statute 425.103(2)(a) “With respect to a transaction other than one pursuant to an open-end plan; if the interval between scheduled payments is 2 months or less, to have outstanding an amount exceeding one full payment which has remained unpaid for more than 10 days after the scheduled or deferred due dates…”

WE ARE FORCE PLACING HOMEOWNERS INS ON A LOAN THAT WE SELL OFF. WE CAN NOT ADD THE INSURANCE ONTO THE LOAN SO WE HAVE TO COLLECT IT FROM THEM. I'M BEING TOLD TO CHARGE IT TO THEIR CHECKING ACCOUNT. THIS WILL OVERDRAW THEM. I'M THEN BEING TOLD TO SEND A RIGHT TO CURE ON THE INSURANCE FROM THE HOME LOAN. CAN I DO THIS?

Look at your note to check what it defines as default and to be SURE you can take the money from their checking account. We don't do that. We pay it from a GL set aside for accounts recv. and then cure them.