What is the name of your state (only U.S. law)? Missouri
my grandmother signed a contract with her son in law. Here is what it says:
Loan Agreement between borrower-GRANDMA and lenders-SON IN LAW.
Loan amount of $6,000.00 is secured with Deed of Trust on property known as ADDRESS.
Loan is in the amount of $6,000.00 at 8.5% interest per annum amertized in the attached schedule. No payment of principal or interest to be made until the sale of property or upon settlement of estate or at time of death. Payment is to come from sale or disposal of property.
This is signed and notarized on May 3rd, 1990
The schedule attached has at the top:
Amortization Schedule
Principal $6,000.00
Interest 8.5% per year
Payment: $ 0.00 monthly
Below that is a list showing the interest she will be accruing. Per month. The way it is shown is every line is the incremental month that starts at 1 and goes to 360. It shows that interest is accounted for monthly, then added to the beginning balance. And keeps growing.
Period 360 is Interest of 535.64 for that month and the balance is at 75,619.66.
This schedule shows no dates of origin and has no signatures.
It stops at 360 months and shows below total due. that has been scratched out and it is meant to show that the loan keeps going by putting etc... at the end.
Lastly there is a Deed of Trust that shows Grandmother as a first part, my mother as second part and SON IN LAW as third part.
So my questions:
Is this legal?
His schedule of monthly compounding interest loan seems to contradict what is signed in the contract of a simple interest loan. Can he do that?
My mother has signed nothing anywhere does she have any liability?
my grandmother signed a contract with her son in law. Here is what it says:
Loan Agreement between borrower-GRANDMA and lenders-SON IN LAW.
Loan amount of $6,000.00 is secured with Deed of Trust on property known as ADDRESS.
Loan is in the amount of $6,000.00 at 8.5% interest per annum amertized in the attached schedule. No payment of principal or interest to be made until the sale of property or upon settlement of estate or at time of death. Payment is to come from sale or disposal of property.
This is signed and notarized on May 3rd, 1990
The schedule attached has at the top:
Amortization Schedule
Principal $6,000.00
Interest 8.5% per year
Payment: $ 0.00 monthly
Below that is a list showing the interest she will be accruing. Per month. The way it is shown is every line is the incremental month that starts at 1 and goes to 360. It shows that interest is accounted for monthly, then added to the beginning balance. And keeps growing.
Period 360 is Interest of 535.64 for that month and the balance is at 75,619.66.
This schedule shows no dates of origin and has no signatures.
It stops at 360 months and shows below total due. that has been scratched out and it is meant to show that the loan keeps going by putting etc... at the end.
Lastly there is a Deed of Trust that shows Grandmother as a first part, my mother as second part and SON IN LAW as third part.
So my questions:
Is this legal?
His schedule of monthly compounding interest loan seems to contradict what is signed in the contract of a simple interest loan. Can he do that?
My mother has signed nothing anywhere does she have any liability?