I just recieved a reaffirmation agreement for my auto loan. It reads as follows:
Description of reaffirmation agreement: Debtors agree to pay **name of bank*** principle of $1,459.63 and interest at the rate of 8% per year. Interest will begin to accrue on. Debtors will make monthly payments of $250.00 for a total amount of $1,459.63. Debtors' first payment will be due on 01/15/2007.
Description of any changes to the credit agreement made as part of this reaffirmation agreement: This reaffirmation reduces: the balance from $1459.63 to $1,459.63, the interest rate from 09.20% to 8% and the monthly payments from $260.33 to $250.00.
Okay I am a little confused. If I pay $250 per month for six months as the agreement states I would have paid off almost exactly the principle. Are they not charging me interest? It says my rate has changed to 8%. The payment has been reduced but I don't see where my final payout reflects the interest rate. The line "Interest will begin to accrue on." is written exactly as in the letter. There is no date written.
Why are they offering me better terms anyway (not that I mind, of course)? I intended to reaffirm this car all along. After all I only have 6 payments left. Is it common for lenders to offer better terms in their reaffimation on a secured debt like a car. The car is worth about a thousand more than I owe.
Am I worrying about nothing? If I sign this agreement as written does anyone see any pitfalls for me? My lawyer forwarded it on to, but his letter only had instructions on where I need to sign.
Description of reaffirmation agreement: Debtors agree to pay **name of bank*** principle of $1,459.63 and interest at the rate of 8% per year. Interest will begin to accrue on. Debtors will make monthly payments of $250.00 for a total amount of $1,459.63. Debtors' first payment will be due on 01/15/2007.
Description of any changes to the credit agreement made as part of this reaffirmation agreement: This reaffirmation reduces: the balance from $1459.63 to $1,459.63, the interest rate from 09.20% to 8% and the monthly payments from $260.33 to $250.00.
Okay I am a little confused. If I pay $250 per month for six months as the agreement states I would have paid off almost exactly the principle. Are they not charging me interest? It says my rate has changed to 8%. The payment has been reduced but I don't see where my final payout reflects the interest rate. The line "Interest will begin to accrue on." is written exactly as in the letter. There is no date written.
Why are they offering me better terms anyway (not that I mind, of course)? I intended to reaffirm this car all along. After all I only have 6 payments left. Is it common for lenders to offer better terms in their reaffimation on a secured debt like a car. The car is worth about a thousand more than I owe.
Am I worrying about nothing? If I sign this agreement as written does anyone see any pitfalls for me? My lawyer forwarded it on to, but his letter only had instructions on where I need to sign.
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