My question involves collection proceedings in the State of: Texas
I'm not sure if I selected the right category and I'm sorry if I didn't.
My husband and I signed a contract with a friend of ours who loaned us the money to buy a car and to buy a few other things that we needed to make a living. We put up two cars and my husband's tools.
We have been paying on the note for 2 years. The note says that we will pay interest and it includes an amortization sheet. A few months ago our friend passed away and his (we call her "wife" but they were not married) is now handling the note. The loan was for 3 years. My question is this, if for some reason we cannot continue to make the payment, will we have to forfeit all the collateral? The note is more than half paid. In my thinking, if we just gave the "estate" one of the vehicles which is valued at more than the total balance we should be even.
Am I thinking incorrectly? I would not think it's fair if we had to give up all of the security since the value of both cars and the other things are valued at far more than the note ever was to begin with.
Also, the new person handling the note claims that we have to pay a per diem of interest instead of monthly and that we owe more interest. The contract does not state a per diem interest rate and there is no late payment penalties.
I'd just like to know where I stand with the law on this so that I am prepared when she comes to create issues.
Thank you for any help you can give me