Is this a legally binding agreement?

Question

I took out a loan to replace my furnace when the old furnace went bad. I was paying off my loan when I lost my job due to lack of work and I am unable to make payments as agreed. I offered to make and have been making smaller payments and made the creditor aware I am selling my home to pay them and the mortgage both in full. They threatened to sue me but today I got a letter from the branch threatening to do the suing, saying I had been approved to borrow additional monies with no payments for two months. There are only 5 people in that office and they are computerized and can look up my account before they make these offers. I replied in writing with a payment for May declining the loan offer but thanking them for accepting my offer to make smaller payments by offering to lend me more money. Since they offered to make me another loan in writing knowing I could only pay partially, are they legally bound to accept the smaller payment on my current loan?

PLEASE NO SMART ALEC REPLIES CALLING ME A LOW LIFE OR SIMILAR DEGRADING TERMS BECAUSE I HAVE INTERNET AND COULD BE PAYING THE CREDITOR THAT AMOUNT. I COULD BE A TRUE DEAD BEET PAYING NOTHING NOW THAT MY INCOME HAS DROPPED TO 1/2 OF WHAT IT WAS. INSTEAD I AM MAKING SMALL PAYMENTS AND PAYING OFF MY OTHER CREDITORS AS WELL. MY INTERNET IS PART OF A PACKAGE DEAL TO GET A CHEAPER PHONE WHICH I NEED FOR EMERGENCIES SINCE I AM A SINGLE MOM.

Bostonia: The offer was to borrow more money,not lower the payments. I am just asking if by offering more money when they know I can only make a partial payment, they are implying I am in sufficiently good standing to borrow from them-which would mean they are satisfied with the current payment

Answer 1

i dont know what country your in but in the uk if you write a letter offering lower payments that you can afford then if they take you to court a judge will throw it out as your making an effort. it was very irresponsible of them to offer more money knowing full well you dont have the means to make repayments. keep paying what you can and they wont have a leg to stand on in court.

Answer 2

The loan is a legally binding agreement with a certain payment amount. You're essentially asking if the loan agreement has been modified to the lower payment amount. You really have to look at the loan agreement to see if written modification is needed.

Even if written modification is needed, you can overcome it if the promise has been fully performed. In other words, if you offerred to make smaller payments, and they said you can on the condition that you take out a loan, and then you took out the loan and made the smaller payments, then it is fully performed. However, if you don't take out the other loan, then there is no acceptance, and they are not contractually required to accept the smaller payments.

If your offer to make smaller payments was accepted separately from their offer to make the 2nd loan, and you made the payment, then there is a modification. They can't force you to take out a loan.

Answer 3

As long as you're stuck in a cycle of offers and counteroffers, you have not yet reached an agreement.

Any time even a single detail is changed in an offer or counteroffer, it's a brand new offer and requires agreement as stated.

Even if you think you've reached an agreement, your situation is complicated enough that it would be very difficult for you to prove it. It's best if you get it in writing. If they're serious, they'll do it. If they're not, then it could be you misunderstood them.

Keep making your payments as you can. It sounds like you don't really need any other arrangements until you're served with papers in a suit.

Answer 4

No, they are not obligated to accept smaller payments on your current loan. They made you an offer but you refused it, leaving your original agreement in full force and effect.

Answer 5

A sales settlement is legally binding while the two factors agree on the words and while there is "attention." in case you made a deposit, a down fee, the settlement must be binding. you ought to in no way have confidence legal experts who signify the different occasion. Get a criminal opinion out of your individual criminal expert. in case you're able to desire to report a regulation journey to enforce the settlement, ask your self whether it is going to likely be fairly easily worth the time and price. apparently to me that the enterprise isn't a guy or woman to be depended on below any circumstances.

Answer 6

There happens to be non profit agencies out there that help people in situations just like yours, there is several programs geared to fit your particular needs. You have to turn over a few stones to find them in your particular region. One institution in my state is called AFFLECK but I don't know if they do business in your area. One good thing is that you are not falling pray to predatory lending practices, Hopefully you will be able to find a new employer and your current lenders would negotiate with you until you get back well on your feet.

Answer 7

YES,since they showed good faith when they lowerd your loan an offered you another loan they they covered there buts,do not worry find a job an sell sart fresh not over just fresh.