owe family money

What is the name of your state? NY

Back in 99 I borrowed a substantial amount of money from my grandmother. With the agreement that I pay a little something on it each month. I went out on disability in 2000 and haven't been back to work nor have I been really able to pay. I'm lucky to keep current with my regular bills, Now what I am concerned about is I have a sale pending on my property and my family knows this. I told my grandmother that once the house did sell I would be making payments again but the problem is now my uncle has power of attorney of my grams affairs and I'm afraid he is going to try and sue me in court for the full balance owned. I took a HUGE loss on the house sale already and if he takes me to court I will be homeless.

When i took out the loan we didn't sign any papers or goto a lawyer. There is nothing in writing. There was however one paper that I did send them stating how much i paid on the loan and how much was left. Can that stand in court - can he sue me??

bump

anyone???

[Dandy Don]

Yes, that document would be accepted as valid evidence.

How much do you owe? You will not necessarily have to lose your home even if he files suit. If uncle wins a judgment will be issued against you, and then you can still make arrangements to pay off the judgment. Are you saying you will not be making enough profit on the sale of the home to pay off the debt?

Re: document

Someone said the papers would have to be notorized or signed by me. It's was neither. Just a print out I made up to let my gram know how much was left on the loan and that I didn't sign.

The debt is $25,000

After I get done paying off (mortgages/liens/taxes) I will be making less than 24k on the sale of the property. If my uncle comes to collect on that he will be taking my entire proceeds and leave me basically broke and on the street.

[djohnson]

'Someone' would be wrong. It doesn't have to be notorized if they can prove it is from you and you admit to the amount owed. They would have to take you to court and win a judgment before they could take anything. You borrowed the money and if you are getting that much from the sale maybe you should pay her back. You borrowed it.

I wish I could just give her all the money and be done with this. But I also have to think of myself too. If I hand over all the money after selling the house I then have no where to live and no money. Only money I do receive is disability and that isn't enough for me to go out and get an apartment. What I had planned on giving them is 25% of what is owned after I sold the house and make arrangements on the rest. To me that doesnt seem unreasonable.

[djohnson]

You can always hope it works out that way. Your grandmother however has been out this amount of money for five years with no 'reasonable' payments or attempts being made. To her I am sure wanting her money back once you have a lump some like that would be 'reasonable'. If it was't for her loaning you the money at the time where would you have been? The same place you will be if you give her the money now? (only with five good years between)

[Dandy Don]

Joann, your suggestion to make arrangements to pay it in periodic installments is the most feasible and the best way to go. You obviously would be in jeopardy if you had to pay off that entire sum at once and you do need a place to live.