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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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I had purchased a time share in HI with a variable interest

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I had purchased a time share in HI with a variable interest rate. In the contract it states that the payments may go up during repayment of the loan. During this time the payments never changed but the lender says that I have a final payment due in the thousands of dollars because they could not make any adjustments to the bank draft. It clearly states in the contract that the lender will make these increases in my payments and final payment so as not to affect the length of the loan. The final payment has been made on the 120 payments due is the variable rate applicable to be a lump sum payment on a 121st payment?

Thank you for your question. Please permit me to assist you with your concerns.

My apologies on this stuation. What you are describing is commonly known as a 'balloon rate' loan, and whatever was unpaid during the regular payment of the loan is finally paid with your last payment (which can therefore grow to be far larger than the other smaller payments). I am unclear as to your question, such contracts are valid under law and increasing the final payment to have the remaining amount owe is both valid and not against the law. Such an increase will also not affect the contract since it would not increase your obligations. Please let me know what I can clarify so I can best do so for you. Thank you!

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