A loan contract was initiated in November 2004 and accepted and signed by loaner and the borrower for a duration of 12 years or 144 months which would be terminated on November 2016.The borrower made the contracted payments each month. However, the borrower has not paid the September, October, and November 2016 payments because the borrower has now filed a lawsuit against me claiming there is a breach of contract in the contract and claimed to have overpaid the loan several years ago.In the borrower's lawsuit against me it stating these premises:
1. A recalculation of the loan by the borrower on August 15, 2016, of the $12,000 according to the written terms of the mortgage
loan agreement $12,000.00 at 16 percent interest per annum that shows a monthly payment of $255.00 for 144 months. However in the recalculation by the borrower, $12,000 loan amortized at 16 percent for 144 months results in $187.90 per month, not $255.00 per month as express in the written agreement. Because the borrower has paid $255.00 per month for 141 months made the loan to be paid off in 75 months on 2/1/2011. The lawsuit claims that the borrower has overpaid 66 months in a total of $16,830 and demand a refund.
2. The borrower also claim in the lawsuit that $55.00 per month was paid to cover the taxes (This was addendum a few days after the agreement was sign stating the $55.00 is a loan management fee) The lawsuit claims that since the borrower paid $55.00 per month for taxes in a total $660.00 per year, but in reality the tax is only about $200 per year. In this case, the borrower has overpaid $5,520 for taxes and demand a refund in the lawsuit.
3. The borrower also claims that I have not given the borrower an annual tax account required by section 5.077 of Texas code and is requiring me to pay $250 per day starting from 2/1/2005.
4. The borrower claims I breach the contract because I did not turn over the title of the property to the borrower after the loan was paid off on 2-1-2011.
5. The borrower claims I committed Statutory Fraud in a Real Estate Transaction.Let me explain. In the original contract, the borrower signs the contract for $310 per month for 144 months. The borrower was given the documents to take to a legal advisor before signing. The borrower was satisfied with the agreement when signed the contract a few days later.
However, inside the installment loan papers, there is a detail in the contract that stated the loan amount of $12,000 with a repayment of 16 percent interest. This was a miscalculation when the contract was created, but it clearly shows in the contract a monthly payment of $255 toward the principle and interest plus a loan management fee of $55 per month totaling a monthly payment of $310. The borrower brought this to my attention in August 2016 and now have not paid the remaining payments, but file a lawsuit for a refund of the alleged overpayment of the loan.
Is there any recourse for me? How to apply the statute of limitation to this contract. Another possible recourse is "The contract itself fully stated $310 per month for 144 months and the borrower agreed and signed it at the beginning of the loan.
Nothing has changed during the period of the contract. The borrower had 3 days to look over the contract and with the option to refuse the agreement but accepted and signed it.
I need your evaluation and recourse.