What is the name of your state? OK
We loaned (unsecured by property but with a promissory note) a significant amount to a family member due upon the sale of her old residence or a specific date (which happened to be after the closing on the old house). She has purchased a new house. The amount of the loan is about 10% of the price of the new house.
The price of the new house is about the appreciated value plus presumed equity of the old property (could have been owned free and clear) however the mortgage filed shows the new house to be financed by a 100% VA loan. Thus, she should have had cash on hand many times the amount due us to pay off the loan upon closing of the old house even with paying all expenses. The issue is not having the cash to repay the loan.
She refuses to repay the loan. I have been unsuccessful in finding an attorney to sue for payment for this over $35K due. I suspect she did not list it as a liability on her mortgage application. Even if she did list it, I would expect that the loan repayment requirement should have been fulfilled prior to closing on the new house.
The FBI information indicates that this is mortgage fraud. Should I contact the lender and supply a copy of the promissory note? Since she has a business which has had government contracts in the past and may pursue them in the future, should I report this to the FBI? Do you have other suggestions on what we might do to obtain repayment? Are we out of luck?
(Note to self! No matter the sob story, never lend to family members!)
We loaned (unsecured by property but with a promissory note) a significant amount to a family member due upon the sale of her old residence or a specific date (which happened to be after the closing on the old house). She has purchased a new house. The amount of the loan is about 10% of the price of the new house.
The price of the new house is about the appreciated value plus presumed equity of the old property (could have been owned free and clear) however the mortgage filed shows the new house to be financed by a 100% VA loan. Thus, she should have had cash on hand many times the amount due us to pay off the loan upon closing of the old house even with paying all expenses. The issue is not having the cash to repay the loan.
She refuses to repay the loan. I have been unsuccessful in finding an attorney to sue for payment for this over $35K due. I suspect she did not list it as a liability on her mortgage application. Even if she did list it, I would expect that the loan repayment requirement should have been fulfilled prior to closing on the new house.
The FBI information indicates that this is mortgage fraud. Should I contact the lender and supply a copy of the promissory note? Since she has a business which has had government contracts in the past and may pursue them in the future, should I report this to the FBI? Do you have other suggestions on what we might do to obtain repayment? Are we out of luck?
(Note to self! No matter the sob story, never lend to family members!)