Defaulting on Payment plan on horse

[mjdiete]

Please don’t be harsh, we all make mistakes.

In December, I decided to purchase a 2014 filly with a payment plan. Her total was 10500, and I made about 2 ,000 in payments and realized I could no longer afford her and have another horse. I tried everything to be able to make these payments but being in the military, it is hard. I am also being separated medically from the military in the next few months. When I first talked to the lady I am purchasing her from she said I could walk away and lose the money I put into her. I planned to do this but tried to make a few payments more. I have decided to walk away and now she wants to take me to court. I know she has every right since I signed her contract but has anyone ever dealt with this?

She owns half the horse and her friend the other half, this is why she says it has to go to court, because her friend is the one persuing.

Any people who have been in this situation or anyone with advice let me know!

You’d think they’d just sell her to someone else and pocket the 2k…

[trubandloki]

What does your contract say about what happens if you default?

[mjdiete]

I was supposed to get a copy of the contract right after I signed it and I never did so I have asked for a copy. I’m almost 100% sure it says I can default because she is taking her time getting me a copy.

But for arguments sake lets say it doesn’t say anything.

[Toaster]

You need to talk to a lawyer not a public forum. The horse is considered property, a default of payment for property will fall under the laws of the state and per your contract.

[mjdiete]

Thanks…
I plan on it…
was curious if anyone else had been through this.

[IronwoodFarm]

Definitely get a copy of the contract. I also think this is a bunch of noise since it will take money, time and effort to sue. There also is a very good chance they would lose.

[findeight]

Where is the horse? Under whose control?

[Guilherme]

If you’re still on Active Duty go see Legal Assistance in the JAG office NOW.

Right now you are protected to some extent by the Soldiers and Sailors Civil Relief Act. Once you separate that goes away. Maybe you have a “window of opportunity” to effect some sort of settlement.

Not having kept or obtained a copy of the contract was serious error. Learn from this and don’t do that again. The easy way to make sure you get a copy is require it before you turn over the cash or check. This not meant to be be a “kick while you’re down” but to ensure that it ends up in your personal “lessons learned” file.

Frankly, you likely “dead in the water” if there’s no enforceable contract and you admit that you purchased the horse on time and have now defaulted. There are some alternatives but just what they are depends on where you live and where the creditor lives. You need to talk to a lawyer SOONEST.

Best of luck to you as you move forward.

G.

[trubandloki]

[QUOTE=findeight;8128582]
Where is the horse? Under whose control?[/QUOTE]
This is a good question.
If the original owner still has the horse then what would their damages be?

[mjdiete]

The lady who is her “current owner” is the barn owner where I board. She is also military and told me JAG wouldn’t do anything (I plan to go anyways if she tries to take this to court). The filly is at her barn and it would be easy for me to walk away as I don’t pay board only the payments for her. That’s why I don’t understand why her other half owner would want to go to court and pay all these fees… I thought horse people were supposed to care about where their horses ended up. Shes a great KWPN filly, grey with a fantastic attitude, I’m sad I can’t keep her but it won’t be hard for them to sell her.

[mjdiete]

Oh and I definitely put this is the lessons learn file and the “here’s what not to do in the future” file!

[OveroHunter]

Wow, I don’t have any experience in buying or selling a horse on a purchase plan (though I once considered it)… I would have assumed like you that if you defaulted after paying a few thousand they would be happy to pocket that money and resell her for the original amount.

I guess they are upset about losing a few months in marketing her and losing possibly future buyers… Man, that sucks OP. Definitely a lesson learned. No advice, but thank you for your service.

[mvp]

[QUOTE=IronwoodFarm;8128578]
Definitely get a copy of the contract. I also think this is a bunch of noise since it will take money, time and effort to sue. There also is a very good chance they would lose.[/QUOTE]

And it’s stupid on everyone’s part that you don’t have a copy of the signed contract. If they have, it so should you. And I’d guess any court will start there.

So do nothing and don’t get frazzled until they produce a copy of the signed contract for you.

One step at a time. And the seller’s pissed-off friend is not your business….unless she was one of the signatories on the sales contract. Was that so?

[mvp]

[QUOTE=mjdiete;8128607]
The lady who is her “current owner” is the barn owner where I board. She is also military and told me JAG wouldn’t do anything (I plan to go anyways if she tries to take this to court). The filly is at her barn and it would be easy for me to walk away as I don’t pay board only the payments for her. That’s why I don’t understand why her other half owner would want to go to court and pay all these fees… I thought horse people were supposed to care about where their horses ended up. Shes a great KWPN filly, grey with a fantastic attitude, I’m sad I can’t keep her but it won’t be hard for them to sell her.[/QUOTE]

I take it the friend is paying the filly’s board? And that’s why she’s mad? BO isn’t losing money. You are losing the payments made toward the purchase price but your aren’t feeding the filly?

It seems to me that whoever is paying to feed the horse is, in fact, losing money in this deal…… or they will if it drags on. I’d guess that you having paid $2,000 since December, they might be breaking even on feeding the horse.

If so, they did lose something in taking the filly off the market for that time and having nothing to show for that but a horse who was fed by someone else for the period. Oh, and they did get to retain control, so at least they still have a product (that they like) to sell.

[Guilherme]

[QUOTE=mjdiete;8128607]
The lady who is her “current owner” is the barn owner where I board. She is also military and told me JAG wouldn’t do anything (I plan to go anyways if she tries to take this to court). The filly is at her barn and it would be easy for me to walk away as I don’t pay board only the payments for her. That’s why I don’t understand why her other half owner would want to go to court and pay all these fees… I thought horse people were supposed to care about where their horses ended up. Shes a great KWPN filly, grey with a fantastic attitude, I’m sad I can’t keep her but it won’t be hard for them to sell her.[/QUOTE]

Is the BO a JAG officer? I worked Legal Assistance in my time and while I could not represent Members I could advise them. Go see the JAG folks BEFORE someone takes you to court. Maybe they would be willing to do some sort of “mediation” since at least 2/3 of this issue is military related.

When it comes to selling horses remember that “money talks and bull shit walks.” That’s the way of capitalism and horse selling is one of the last bastions of capitalism in America.

Is the horse papered and who is the recorded owner? That can make a difference in how things go.

Don’t be passive on this. From your OP it looks like your outside liability exposure is $8500. That’s not chicken feed but neither is it a pimple on the butt of the National Debt. A good mediator could likely figure a way out of this if the horse is as you describe it.

Get on it and stay on it. Having a big debt on your head as you re-enter civilian life is a Bad Thing.

G.

CDR, USNR(Ret.); Honorary Member. U.S. Navy Judge Advocate General’s Corps; Member, State Bar of Texas (Retired)

[SmartAlex]

Next time get a copy of the contract you signed before you part with any money. Lesson Learned.

[findeight]

You got a lot of vague things here, you have not spoken to the other owner…or even met her? Did the other owner sign the contract or give the first authorization to do so?? And the gal you do know failed to give you a copy of the contract at signing and has not produced it despite your requests? And SHE is telling you what the JAG is going to do?

Take a deep breath here, you are in clear default but I think you are getting bullied a bit. Go see the JAG. But get everything you do have together including texts and e mails requesting a copy of the contract and the date you advised her you would have to default. But you NEED that original contract, get after her for it.

Probably going to cost you something but since the horse never left her property and has remained under her care and control with you not even paying board? This wasn’t handled in a very professionally on her end. Some dealers do take advantage, that not giving you the contract copy initially concerns me and failing to get you one now does not increase my trust in this one.

Please don’t take this as advocating anybody not taking full responsibility, on the contrary. But this is pretty sloppy on the seller side too. Since the filly never left their direct supervision, think some type of compromise can be worked out.

Good luck, and get to that lawyer.

[red_mares]

[QUOTE=mjdiete;8128607]
The lady who is her “current owner” is the barn owner where I board. She is also military and told me JAG wouldn’t do anything (I plan to go anyways if she tries to take this to court). The filly is at her barn and it would be easy for me to walk away as I don’t pay board only the payments for her. That’s why I don’t understand why her other half owner would want to go to court and pay all these fees… I thought horse people were supposed to care about where their horses ended up. Shes a great KWPN filly, grey with a fantastic attitude, I’m sad I can’t keep her but it won’t be hard for them to sell her.[/QUOTE]

You can’t figure out why the other owner is upset? They thought they had the horse sold, and now they don’t. Upset people with a (clearly) broken contract often bring up going to court, even it doesn’t make financial sense.

Talk to your JAG officer and get the contract, but be a little sympathetic about where you put them. It’s not as easy as “just pocket the $ & sell the horse” for them.

They can care where the horse goes and still be greatly annoyed that they are suddenly selling the horse AGAIN. Just as you decided that you can’t afford the horse, did it occur to you that they were planning on not having the expense as well? They may not have lost money on board, but they probably aren’t coming out ahead on the deal in the long run.

[LoriW]

Usually in any contract (not sure what State you are in) - there is a “termination for default” clause in the contract. This is why you need to see the contract to know what rights they/you have. Normally, its something like this:

“K. DEFAULT
Upon default of payment by BUYER, SELLER shall repossess said horse and terminatethis Agreement for Cause. BUYER shall FORFEIT any moneys paid prior to terminationof this Agreement under default of payment. Default of payment is defined as anypayment not paid within 15 days of due date. In addition, material breach of this Agreement shall terminate same. In the event of a breach, the other party shall have the right to recover from the breaching party all reasonable attorney’s fees and court costs.”

It may have something as simple as returning the property (i.e., horse) but it may have a clause that includes attorney’s fees, court costs, etc. But, considering you have already given the horse back, most Courts would not award anything since you’ve already forfeited the monies you’ve paid.

[roamingnome]

[QUOTE=red mares;8128727]
You can’t figure out why the other owner is upset? They thought they had the horse sold, and now they don’t. Upset people with a (clearly) broken contract often bring up going to court, even it doesn’t make financial sense.

Talk to your JAG officer and get the contract, but be a little sympathetic about where you put them.

They can care where the horse goes and still be greatly annoyed that they are suddenly selling the horse AGAIN. Just as you decided that you can’t afford the horse, did it occur to you that they were planning on not having the expense as well? They may not have lost money on board, but they probably aren’t coming out ahead on the deal in the long run.[/QUOTE]

This^^^
If I thought I had a horse sold, and 4-5 months later (of which I was still paying board!) I find out that horse isn’t sold? I’d be upset to.