bad loan, bad judgement

[hardtime1]

What is the name of your state? NJ

Our parents lent $80000(home equity) to stepbrother. He repaid $38000, making payment directly to bank. Now is refusing to repay any more. He has a history of accepting responsibility for this loan, the bank even calls him directly for collection even though he is NOT on the loan. no contract except verbal exsist. my brother and I don't want to have to pay this debt for this slimeball but can't let our parents house go into foreclosure.
The 1st mortgage and home equity loan are through different companies
can he sue to collect this from his son?
can a lien be put on son's new house?

[Ladynred]

can he sue to collect this from his son?

Absolutely .. but with just a verbal agreement you're going to need some kind of proof this wasnt' a 'gift'.

can a lien be put on son's new house?

Yes, but only if you win the lawsuit and get a judgment against him.

[Chien]

I agree with LNR, but please use fewer pronouns without some additional clarification.

the bank even calls him directly for collection even though he is NOT on the loan.

Who is on the loan? Are your parents still living? Why is the lender calling stepbrother? (And get that fixed.)

can he sue to collect this from his son?

And this “he” would be your father? Because, if you’re not on the loan and have no equity interest in the house, you and your brother have no standing to sue.

While a judgment lien can be placed, if the parents’ house is still in danger of foreclosure, if payments don’t continue, don’t rely on a real property lien. Think about additional ways to enforce a judgment, because the parents’ house could be lost, if nothing else is done. A lien “clouds” the title to son’s house, but that may mean little for a long time – until he tries to sell or refinance – and you need cash flow now.

[hardtime1]

Originally Posted by Ladynred

Absolutely .. but with just a verbal agreement you're going to need some kind of proof this wasnt' a 'gift'.

I tought that the son making more than half the payments may be enough proof that he was intended to pay this debt.

And if we can get just2 witnesses to tell the truth about the verbal contract let alone the son would have to lie.