Hey everyone,
Just a warning here for those of you who are planning on signing a reaffirmation agreement to keep a vehicle or any other debt.
We received a reaffirmation agreement from our bank (USAA Savings) for our Yukon... hidden within its 10 pages of legalease were some rather nasty suprises.
First, they put in there that they had "lowered the interest rate" as an accomodation to us... yeah, from 4.5% to 4.49% Literally less than a penny per month difference in payment.
Second, they put in a comment that says that if we change our mind at any time and decide NOT to raffirm, that we agree that this extends their right to object to the dischargability of the debt by 60 days... meaning we agree to delay our discharge and close by 60 days if we change our minds on the reaffirmation.
Third, they also put in a comment that says that we agree that by entering into this agreement that we are acknowledgeing that this debt would not be dischargable even if we did NOT reaffirm. So we'd be saying that if we decided to not reaffirm that it wouldn't be dischargable and we'd have to pay it anyway.
Can you believe this?
This agreement came from the banks legal counsel... we requested one straight from the bank and it had none of these clauses in it... we've sent this new, clean one, back and we'll see what happens. We've already decided that if they want us to sign that other agreement in order for us to reaffirm that they can forget it and come get their Yukon.
Hell, at this stage of the game it may be a moot point anyway... we had sent in the second reaffirmation agreement 3 weeks ago... we called them Friday as we still hadn't seen the agreement filed with the court... and they said that they never received it... which I don't believe for a minute. So we resent it, but we have only 3 weeks until our discharge and I wonder if thats enough time to get all the filings done. I guess we'll have to wait and see.
Either way, ramblings aside.... make sure you read EVERY little line and paragraph in any raffirmation agreement.
Just a warning here for those of you who are planning on signing a reaffirmation agreement to keep a vehicle or any other debt.
We received a reaffirmation agreement from our bank (USAA Savings) for our Yukon... hidden within its 10 pages of legalease were some rather nasty suprises.
First, they put in there that they had "lowered the interest rate" as an accomodation to us... yeah, from 4.5% to 4.49% Literally less than a penny per month difference in payment.
Second, they put in a comment that says that if we change our mind at any time and decide NOT to raffirm, that we agree that this extends their right to object to the dischargability of the debt by 60 days... meaning we agree to delay our discharge and close by 60 days if we change our minds on the reaffirmation.
Third, they also put in a comment that says that we agree that by entering into this agreement that we are acknowledgeing that this debt would not be dischargable even if we did NOT reaffirm. So we'd be saying that if we decided to not reaffirm that it wouldn't be dischargable and we'd have to pay it anyway.
Can you believe this?
This agreement came from the banks legal counsel... we requested one straight from the bank and it had none of these clauses in it... we've sent this new, clean one, back and we'll see what happens. We've already decided that if they want us to sign that other agreement in order for us to reaffirm that they can forget it and come get their Yukon.
Hell, at this stage of the game it may be a moot point anyway... we had sent in the second reaffirmation agreement 3 weeks ago... we called them Friday as we still hadn't seen the agreement filed with the court... and they said that they never received it... which I don't believe for a minute. So we resent it, but we have only 3 weeks until our discharge and I wonder if thats enough time to get all the filings done. I guess we'll have to wait and see.
Either way, ramblings aside.... make sure you read EVERY little line and paragraph in any raffirmation agreement.
