gift letter

[VeeGee]

What is the name of your state? NY

I don't know if this is the right room for this issue...if not, someone please direct me to the room this issue belongs in?

A friend of my cousin bought a house in NJ...about 19 or 20 yrs ago. This friend needed my cousin to write a "GIFT LETTER" for $8000... where is says the money is a gift and not a loan. This friend needed this to show up in his bank acct to close on the house he was buying. As far as I know...this "GIFT LETTER" was written on a piece of paper...(not sure if it was notarized or not).
About 6 or 7 yrs after the purchase of the home...this friend ended up foreclosing on the home. My cuz asked for his money back with 6% interest (which was agreed upon) when this letter was given to this friend. The friend refused to give my cuz his money back and used the "GIFT LETTER" as his defense should he take him to court and sue him for the money. If someone, was a eye witness to the agreement that this money would be paid back should the house be sold or foreclose...would this witness be of value to my cuz...should he persue taking this friend to court? Thanx for any advice

 

[JETX]

Your friend has (at least) two HUGE problems with this.....
1) Statute of Limitations (SOL): Based on your post, the home was purchased 19 or 20 years ago (1983 or 1984). Then, it was foreclosed on 6 to 7 years later (1989 to 1991). The SOL in NY for a contract (verbal or written) is 6 years. The debt has expired.
2) "Tainted hands". If I understand your post correctly, the friend is claiming that he/she LOANED the money to the other party when the statement she provided said it was a gift. Notwithstanding the written GIFT statement, the document was fraudulent (tainted) in its contents. Your friend cannot recover any action based on his/her tainted fraudulent actions.

 

[VeeGee]

Thanx Jetx...it's just what I thought, but needed to verify it.