Lien on a house for money owed?

[baylor3217]

What is the name of your state? Texas but person stealing the money is in Ohio

I have a friend at church that loaned someone $11,000 to help them bridge a gap after losing a job. They were getting a 2nd mortgage on their house and the money was to be loaned for < 1 month while the mortgage funds were delivered.
The person then a month later said that fell through and is now not responding, ostensibly to steal the money.

What recourse does the person have that loaned the money way? Everything is documented in writing.
Can a lien be taken out on their home in Ohio? Any other or better steps that the lender of the cash should take?

Is there a better sub forum to put this question in?

 

[PayrollHRGuy]

You can't place a legitimate lien on the home until you have a judgment from the court if such liens are legal in your state. Even if you can you would be behind at least one other lien.

Also as much as you feel it is theft it isn't. It is a debt no different than an unpaid credit card.

You will likely need to sue in OH which is good because odds are you would never see the money in TX.

 

[zddoodah]

I have a friend at church that loaned someone $11,000 to help them bridge a gap after losing a job. They were getting a 2nd mortgage on their house and the money was to be loaned for < 1 month while the mortgage funds were delivered.

So...let's call your friend Dopey and the other person Sneaky.

Sneaky lost his job and borrowed $11k from Dopey. The agreement was for Sneaky to repay Dopey within no more than a month. Correct?

The person then a month later said that fell through and is now not responding, ostensibly to steal the money.

I think what you're saying here is that Sneaky failed to repay the loan as agreed -- apparently because the anticipated second mortgage loan fell through. Correct? And the reference to stealing is just rhetoric. There's no evidence that, at the time of the making of the loan, Sneaky didn't intend to repay it. Right?

What recourse does the person have that loaned the money way?

Dopey can sue Sneaky for breach of the loan agreement. Probably more efficient to do it in Ohio (even though it's possible, under the facts described, that a Texas court might have jurisdiction). Unfortunately, it appears the limit in Ohio small claims court is only $6,000. I hope for Dopey's sake that the loan agreement provides for recovery of attorneys' fees.

Can a lien be taken out on their home in Ohio?

Absolutely not (unless Sneaky agrees to give the lien, which I assume isn't going to happen). If Dopey wanted a lien, that should have been done at the time the loan was made. Of course, if Dopey sues and wins, Dopey can perfect the judgment by recording the judgment or an abstract of judgment, but that cannot happen until after judgment is entered.

Is there a better sub forum to put this question in?

A better sub? Huh?

 

[adjusterjack]

You will likely need to sue in OH which is good because odds are you would never see the money in TX.

It's also not such a good thing because Dopey will have to travel to Ohio, maybe more than once, and will not recover his travel costs nor any lost time from work.

Worse, even with a judgment, it may be impossible to collect from deadbeat Sneaky.

 

[baylor3217]

So...let's call your friend Dopey and the other person Sneaky.

Sneaky lost his job and borrowed $11k from Dopey. The agreement was for Sneaky to repay Dopey within no more than a month. Correct?




I think what you're saying here is that Sneaky failed to repay the loan as agreed -- apparently because the anticipated second mortgage loan fell through. Correct? And the reference to stealing is just rhetoric. There's no evidence that, at the time of the making of the loan, Sneaky didn't intend to repay it. Right?




Dopey can sue Sneaky for breach of the loan agreement. Probably more efficient to do it in Ohio (even though it's possible, under the facts described, that a Texas court might have jurisdiction). Unfortunately, it appears the limit in Ohio small claims court is only $6,000. I hope for Dopey's sake that the loan agreement provides for recovery of attorneys' fees.




Absolutely not (unless Sneaky agrees to give the lien, which I assume isn't going to happen). If Dopey wanted a lien, that should have been done at the time the loan was made. Of course, if Dopey sues and wins, Dopey can perfect the judgment by recording the judgment or an abstract of judgment, but that cannot happen until after judgment is entered.




A better sub? Huh?

I wasn’t sure if I was posting this question in the right forum

attorney fees aren’t part of an agreement. This was given one church member to another

the details of when it was loaned and when it would be paid back are in emails and text messages. Had there been fees etc stipulated, they’d simply not pay those either so trying to help them determine how to
Proceed

 

[quincy]

What is the name of your state? Texas but person stealing the money is in Ohio

I have a friend at church that loaned someone $11,000 to help them bridge a gap after losing a job. They were getting a 2nd mortgage on their house and the money was to be loaned for < 1 month while the mortgage funds were delivered.
The person then a month later said that fell through and is now not responding, ostensibly to steal the money.

What recourse does the person have that loaned the money way? Everything is documented in writing.
Can a lien be taken out on their home in Ohio? Any other or better steps that the lender of the cash should take?

Is there a better sub forum to put this question in?

I wasn’t sure if I was posting this question in the right forum

attorney fees aren’t part of an agreement. This was given one church member to another

the details of when it was loaned and when it would be paid back are in emails and text messages. Had there been fees etc stipulated, they’d simply not pay those either so trying to help them determine how to
Proceed

This section of the forum is fine for your question.

Has your church-friend asked his friend in Ohio why he has not repaid the $11,000? Or has he been unable to reach him at all?

How long ago was the loan made? Was there a specific date given for repayment or just a vague, non-specific “in about a month” or “when the second mortgage is approved” date for repayment? Was the loan to be repaid in full on that date?

If the Ohio person was unemployed at the time he applied for the second mortgage, it is not all that surprising that the second mortgage was not approved. If he is still unemployed, it is not all that surprising that the loan to your church-friend has not been repaid.

Your church-friend has a few options, none of which are great if the Ohio person is still unemployed. Collecting on any judgment is hard enough when the judgment-debtor actually has a job with wages to garnish.

Your church-friend can sue the Ohio person in Ohio, where the small claims limit is $6000. Contact the court in the county where the Ohio person lives for instructions on filing.

Or your church-friend could sue the Ohio person in Texas, where the small claims limit is $20,000, but you could find there is an issue with personal jurisdiction.

Or, before your church-friend files any lawsuit anywhere, he could have an attorney (preferably one located in the Ohio county where the person resides) send a letter to this Ohio person, advising him that you are considering a lawsuit and one will be pursued if the $11,000 is not repaid as per your agreement. Then your church-friend can wait and hope that the letter scares his Ohio friend into paying.

No one really should loan money to friends if they are not prepared to potentially lose that money.

 

[baylor3217]

This section of the forum is fine for your question.

Has your church-friend asked his friend in Ohio why he has not repaid the $11,000? Or has he been unable to reach him at all?

How long ago was the loan made? Was there a specific date given for repayment or just a vague, non-specific “in about a month” or “when the second mortgage is approved” date for repayment? Was the loan to be repaid in full on that date?

If the Ohio person was unemployed at the time he applied for the second mortgage, it is not all that surprising that the second mortgage was not approved. If he is still unemployed, it is not all that surprising that the loan to your church-friend has not been repaid.

Your church-friend has a few options, none of which are great if the Ohio person is still unemployed. Collecting on any judgment is hard enough when the judgment-debtor actually has a job with wages to garnish.

Your church-friend can sue the Ohio person in Ohio, where the small claims limit is $6000. Contact the court in the county where the Ohio person lives for instructions on filing.

Or your church-friend could sue the Ohio person in Texas, where the small claims limit is $20,000, but you could find there is an issue with personal jurisdiction.

Or, before your church-friend files any lawsuit anywhere, he could have an attorney (preferably one located in the Ohio county where the person resides) send a letter to this Ohio person, advising him that you are considering a lawsuit and one will be pursued if the $11,000 is not repaid as per your agreement. Then your church-friend can wait and hope that the letter scares his Ohio friend into paying.

No one really should loan money to friends if they are not prepared to potentially lose that money.

thanks for the response. Yes there was a date written in the texts that it was to be repaid. The person, as I understand it, has disappeared for several weeks now. Won’t respond to calls or texts. Their house is still under there name but would assume it will be foreclosed in at some point by the sound of things.
This person was trying to do the right thing but as they say, no good deed goes unpunished so now they need to figure out how to pursue getting the money back or a payment plan etc. and whatever legal means possible. As easy as it is to track someone these todays, there whereabouts are well known. They just refuse to respond.

 

[quincy]

thanks for the response. Yes there was a date written in the texts that it was to be repaid. The person, as I understand it, has disappeared for several weeks now. Won’t respond to calls or texts. Their house is still under there name but would assume it will be foreclosed in at some point by the sound of things.
This person was trying to do the right thing but as they say, no good deed goes unpunished so now they need to figure out how to pursue getting the money back or a payment plan etc. and whatever legal means possible. As easy as it is to track someone these todays, there whereabouts are well known. They just refuse to respond.

I think starting with a letter from a lawyer to the Ohio person might be the best first step. But your church-friend might also want to accept that he may never see the money again.

 

[Just Blue]

thanks for the response. Yes there was a date written in the texts that it was to be repaid. The person, as I understand it, has disappeared for several weeks now. Won’t respond to calls or texts. Their house is still under there name but would assume it will be foreclosed in at some point by the sound of things.
This person was trying to do the right thing but as they say, no good deed goes unpunished so now they need to figure out how to pursue getting the money back or a payment plan etc. and whatever legal means possible. As easy as it is to track someone these todays, there whereabouts are well known. They just refuse to respond.

Not "legal" advice, but just beenontheplanetforoverhalfacentury" advice...

Never EVER loan $$ you can't afford, (as in won't miss it) , to lose.

 

[adjusterjack]

Never loan money even if you CAN afford to lose it since you are almost guaranteed to lose it cause you ain't smarter than the bank that won't lend it.

 

[LdiJ]

What is the name of your state? Texas but person stealing the money is in Ohio

I have a friend at church that loaned someone $11,000 to help them bridge a gap after losing a job. They were getting a 2nd mortgage on their house and the money was to be loaned for < 1 month while the mortgage funds were delivered.
The person then a month later said that fell through and is now not responding, ostensibly to steal the money.

What recourse does the person have that loaned the money way? Everything is documented in writing.
Can a lien be taken out on their home in Ohio? Any other or better steps that the lender of the cash should take?

Is there a better sub forum to put this question in?

Ok, first, this is not a question of stealing if I understand you correctly. This is a question of defaulting on the terms of a loan. On top of that, it was a dumb loan to make in the first place. The person lost their job. Their odds of successfully getting a 2nd mortgage while unemployed was slim to none in the first place, and your friend should have known that and should never have lent them money on that basis.

Your friend can certainly sue if they person they loaned money to breached the terms of the loan. Collecting however could be difficult.

 

[baylor3217]

Following up as it’s been a few months. Still no communication.

Friend hired PI. Knows whereabouts and wife’s job location etc. she’s still employed. They’restill living in the house that was about to be foreclosed in when the money was lent to them.

If lawsuit is filed in ohio, and the friend won, obviously they wouldn’t pay.

Would a judgement against them (the husband and the employed wife) prevent purchase of another house etc with this judgement against them?

At this point it’s now about principle for the church member that loaned the money.

 

[Bali Hai Again]

Following up as it’s been a few months. Still no communication.

Friend hired PI. Knows whereabouts and wife’s job location etc. she’s still employed. They’restill living in the house that was about to be foreclosed in when the money was lent to them.

If lawsuit is filed in ohio, and the friend won, obviously they wouldn’t pay.

Would a judgement against them (the husband and the employed wife) prevent purchase of another house etc with this judgement against them?

At this point it’s now about principle for the church member that loaned the money.

If they have the money to purchase another house, how would a judgement that has been decreed or not prevent them from buying it?

Well hopefully that principled church member learned a valuable lesson.

 

[baylor3217]

If they have the money to purchase another house, how would a judgement that has been decreed or not prevent them from buying it?

Well hopefully that principled church member learned a valuable lesson.

likely they’d need a loan. Does a judgement against them prevent that?

I had a friend in Nevada have to pay back money 11 years later due to a lost small claims court issue they refused to pay before the bank would loan them the money.

 

[adjusterjack]

likely they’d need a loan. Does a judgement against them prevent that?

Yes, if they had to take out a mortgage the judgment lien (if properly recorded) could stymie their efforts.

But that not an absolute certainty.