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Contract-are parents right?

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cherbearam

Guest
What is the name of your state? What is the name of your state? arizona
Seven years ago my husband and I borrowed money from my sister to pay off credit card depts. Due to unforseen circumstances, we fell behind on the payments. At the end of the contract time period, we still owed $19,000 which includes balance and interest. We have taken out a second mortagae and owe $10,000. My parents, who say they are acting for my sister, say they can now name the terms as to how the remainder of the balance be paid. (They have added $3,000 included in this balance as "extra accured interest" since we are in default). They say we must, according to their lawyer, meet any demands they set. These include: any interest percent to the remaining balance they wish up to 21%, add in lawyer fees if they so choose, hire a collection agency which we must pay for and any late fee dollar amount they wish to set. They say we have no choice in the matter.
My question is are they right? Do we have to accept all these conditions?
thanks for your advice.
 


I AM ALWAYS LIABLE

Senior Member
cherbearam said:
What is the name of your state? What is the name of your state? arizona
Seven years ago my husband and I borrowed money from my sister to pay off credit card depts. Due to unforseen circumstances, we fell behind on the payments. At the end of the contract time period, we still owed $19,000 which includes balance and interest. We have taken out a second mortagae and owe $10,000. My parents, who say they are acting for my sister, say they can now name the terms as to how the remainder of the balance be paid. (They have added $3,000 included in this balance as "extra accured interest" since we are in default). They say we must, according to their lawyer, meet any demands they set. These include: any interest percent to the remaining balance they wish up to 21%, add in lawyer fees if they so choose, hire a collection agency which we must pay for and any late fee dollar amount they wish to set. They say we have no choice in the matter.
My question is are they right? Do we have to accept all these conditions?
thanks for your advice.
My response:

Is your sister still alive?

Was the contract in writing?

What is the first date of the contract?

What is the date of your last payment?

IAAL
 
Last edited:
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cherbearam

Guest
answer

az, sister is still alive and refuses to discuss the issue. Parents say they just used her money that they are the excuters of the loan. First payment, 7 years ago last Feb. 2002, last payment was made in June 2002. This month we deposited what we can afford this month into my sister's account. This was how we made the payments.
 
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cherbearam

Guest
reply?

az,
I am sorry, I did reply to your questions. I am sorry if I missed one, yes, the original contract was in writing. I know we are in default. My sister is still alive and won't respond to our request to talk to us concerning this situation. My parents say they are the ones who are the executors of the contract, yet my sister's name is on the contract. In all instances, we contacted her when we had a problem making that month's payment. Her response was"don't worry about it". We do intend to pay the full amount owed. We just don't feel the 15% interest and other demands are reasonable. We want to know if we are legally obligated to accept all of their demands. We took out a second mortagage to pay off 1/2 of the full amount still owed. WE also agreed to pay the additonal "extra accurred interest" that totaled $3,000 to be added to the amount owed. We are now at $10,000 to be owed with the original amount, "extra accurred interest" etc...
I do want your advice and hope you will repond. I am not on-line constantly so please be patient as I will check for any further questions you may have and respond as quickly as I can.
thanks for being willing to help. cher:confused:
 
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cherbearam

Guest
I do want your help,

Please read other replies to your further questions, I do want your help.
reply?
az,
I am sorry, I did reply to your questions. I am sorry if I missed one, yes, the original contract was in writing. I know we are in default. My sister is still alive and won't respond to our request to talk to us concerning this situation. My parents say they are the ones who are the executors of the contract, yet my sister's name is on the contract. In all instances, we contacted her when we had a problem making that month's payment. Her response was"don't worry about it". We do intend to pay the full amount owed. We just don't feel the 15% interest and other demands are reasonable. We want to know if we are legally obligated to accept all of their demands. We took out a second mortagage to pay off 1/2 of the full amount still owed. WE also agreed to pay the additonal "extra accurred interest" that totaled $3,000 to be added to the amount owed. We are now at $10,000 to be owed with the original amount, "extra accurred interest" etc...
I do want your advice and hope you will repond. I am not on-line constantly so please be patient as I will check for any further questions you may have and respond as quickly as I can.
thanks for being willing to help. cher
 

I AM ALWAYS LIABLE

Senior Member
Re: I do want your help,

cherbearam said:
Please read other replies to your further questions, I do want your help.
reply?
az,
I am sorry, I did reply to your questions. I am sorry if I missed one, yes, the original contract was in writing. I know we are in default. My sister is still alive and won't respond to our request to talk to us concerning this situation. My parents say they are the ones who are the executors of the contract, yet my sister's name is on the contract. In all instances, we contacted her when we had a problem making that month's payment. Her response was"don't worry about it". We do intend to pay the full amount owed. We just don't feel the 15% interest and other demands are reasonable. We want to know if we are legally obligated to accept all of their demands. We took out a second mortagage to pay off 1/2 of the full amount still owed. WE also agreed to pay the additonal "extra accurred interest" that totaled $3,000 to be added to the amount owed. We are now at $10,000 to be owed with the original amount, "extra accurred interest" etc...
I do want your advice and hope you will repond. I am not on-line constantly so please be patient as I will check for any further questions you may have and respond as quickly as I can.
thanks for being willing to help. cher
My response:

It sounds like your parents are taking heavy drugs, or they are hallucinating. Since your contract is in writing, and your sister is still alive, and you never mentioned that your sister gave your parents a written assignment to her rights under the contract, your parents have no authority to enforce the contract.

Therefore, your parents can't collect the money under the contract, and they are bluffing you with regard to "an attorney" who said they can - - and also told them that they can change the terms of the written contract - - they can't, and neither can your sister.

Ask your parents for the "authority" (that's in writing) allowing them to even discuss the contract with you, let alone try to change the terms and to collect on it. If they are unable to show you something in writing allowing them to collect, or to change the terms of the contract, then tell your parents to take a flying leap.

IAAL
 
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cherbearam

Guest
thanks,

Thanks for your help. My parents say they can speak on behalf of sister as they were listed on the loan in case of the death of my sister. This loan is in default, I am not arguing that fact as the time period to pay it off has passed. Do you have any advice as to what I can do now? I am making payments toward the balance. Which should take no more than 2 more years. My sister refuses to talk to me regarding this situation. thanks again for responding and your time.
 

I AM ALWAYS LIABLE

Senior Member
Re: thanks,

cherbearam said:
Thanks for your help. My parents say they can speak on behalf of sister as they were listed on the loan in case of the death of my sister. This loan is in default, I am not arguing that fact as the time period to pay it off has passed. Do you have any advice as to what I can do now? I am making payments toward the balance. Which should take no more than 2 more years. My sister refuses to talk to me regarding this situation. thanks again for responding and your time.
My response:

Your parents can say all they want. What they have to say has no meaning under the law. The fact is, your sister isn't dead, and until that day happens, your parents have "no legal standing" to enforce the contract - - only your living sister has that option.

Tell your parents to "bite rocks." They cannot change the terms of the contract, and they cannot enforce the contract. It's that simple. Like your sister is doing with you, stop talking to your parents about this matter. They can do absolutely nothing to you. If you insist on talking to your parents about this matter, inform them that you want their "attorney" (who doesn't exist) to write you a letter explaining their "legal standing" under the contract, and to explain to you how your parents can change the terms and conditions of the contract.

Stand up to your parents - - they're just trying to scare you into doing something they cannot make you do.

IAAL
 
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cherbearam

Guest
thanks again

Thanks again, I and my husband have felt they werejust trying to intimadate us but wanted to be sure. Again, thanks for your help.
 
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cherbearam

Guest
Thanksgiving

While I do appreciate your humor too, (we have decided to start our own family traditions, starting with Thanksgiving). I must state to all that we, my husband and I, are paying on the original loan amount due and intend to pay it all off. We just feel this extra amount of 15% to the already interest due and added interest, is to say it politely, ridiculous. Thanks for your comment, Stephen, but I rather have advice and not on how or what to cliff, bridge or building to jump off on, my husband already is creative enough on his "choice" words he has used regarding my parents.
:p
 

stephenk

Senior Member
Dear Cher,

Everyone on this board probably has a story to tell about their own families or in-laws. I am amazed as to how your parents are treating you and your husband.

Smart move on starting your own family traditions that exclude people that only give your grief and sorrow.

If there is any way you can obtain a loan from a bank or take another loan on your house (if you have one), I would suggest you go that route. Pay off your sister and then change your phone number so your "family" can never call you.

With parents like that, I would rather be an orphan.
 
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cherbearam

Guest
paying

Thanks for responding. We have taken on a 2nd mortgage to repay a good portion of the amount due. I would change my phone number, but I feel that would be childish and spiteful, two things I will not reduce us to, even if they have. I have my children, my husband, other family and friends not to forget to mention my faith in God.
Take care, cheryl
 

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