werking4sense
Member
What is the name of your state? GA
I am in an LLC with my sister and brother. We inherited a house free and clear that is in the LLC.
My brother went through a nasty divorce and said he would risk losing custody and be held in contempt if he didn’t fulfill his obligations in his divorce decree like paying off half of the credit cards. He cried and carried on to us that he would die if he couldn’t have joint custody and we felt for him.
He asked us if he could take a loan out on the house to pay off his ex, get a good lawyer for his kids etc. Even though everyone told us not to, my sister and I let him only because all three of us are selling some land in the next year or so and we figured he could pay it off with the land sale.
He agreed that he would sign over all of his inheritance to me and my sister and deposit the monthly check into the estate fund and my sister (executor) would write the check to the mortgage company so she could keep track. He also agreed that he would take out a life insurance policy for the amount of the loan with the LLC as beneficiary in case anything happens to him. He was also asked to get the mortgage company to cut checks to the credit card companies instead of getting a lump sum. All of these negotiations took place in April ’07. He took a loan out for 100K.
After his divorce, he was living in an apartment with his new and way younger girlfriend who pretty much broke up his marriage. Last night, I happened to find out that he bought a house in the most expensive neighborhood in the town where he lives…and through more research, he bought it in May ’07 for over $400K. I know he used that mortgage money for a down payment because he doesn’t even have a job and he has continued to tell us that he is living in an apartment.
My sister and I feel totally betrayed. We are ready to take legal action but we don’t know if it is possible. He has not fulfilled his obligations set forth in the negotiations. He has yet to get an insurance policy, send the check to my sister or sign over his inheritance. For the proof of the accounts that he said he paid, he wrote checks out of his checkbook and photo copied them just the front of them.
He got this loan under false pretenses and didn’t adhere to the terms of the agreement. Can we sue?
I am in an LLC with my sister and brother. We inherited a house free and clear that is in the LLC.
My brother went through a nasty divorce and said he would risk losing custody and be held in contempt if he didn’t fulfill his obligations in his divorce decree like paying off half of the credit cards. He cried and carried on to us that he would die if he couldn’t have joint custody and we felt for him.
He asked us if he could take a loan out on the house to pay off his ex, get a good lawyer for his kids etc. Even though everyone told us not to, my sister and I let him only because all three of us are selling some land in the next year or so and we figured he could pay it off with the land sale.
He agreed that he would sign over all of his inheritance to me and my sister and deposit the monthly check into the estate fund and my sister (executor) would write the check to the mortgage company so she could keep track. He also agreed that he would take out a life insurance policy for the amount of the loan with the LLC as beneficiary in case anything happens to him. He was also asked to get the mortgage company to cut checks to the credit card companies instead of getting a lump sum. All of these negotiations took place in April ’07. He took a loan out for 100K.
After his divorce, he was living in an apartment with his new and way younger girlfriend who pretty much broke up his marriage. Last night, I happened to find out that he bought a house in the most expensive neighborhood in the town where he lives…and through more research, he bought it in May ’07 for over $400K. I know he used that mortgage money for a down payment because he doesn’t even have a job and he has continued to tell us that he is living in an apartment.
My sister and I feel totally betrayed. We are ready to take legal action but we don’t know if it is possible. He has not fulfilled his obligations set forth in the negotiations. He has yet to get an insurance policy, send the check to my sister or sign over his inheritance. For the proof of the accounts that he said he paid, he wrote checks out of his checkbook and photo copied them just the front of them.
He got this loan under false pretenses and didn’t adhere to the terms of the agreement. Can we sue?