Can we collect?

[angeliahoke]

My father passed away in December 1999. Two years before he passed away he agreed to loan his niece, my cousin, $30,000.00 so she could use the money as a down payment for her house in Big Bear, California. My father used his house as collateral for the loan. The verbal agreement was that my cousin would make payments on the loan (the payments were sent to her from the bank) and pay the amount back to my father, in full, in two years time. The same month that my father passed away my cousin stopped making payments on the loan. We did not find out about this until the bank sent foreclosure notices on the house. We have since sold the house and had to pay off her loan. The same week that my father passed away she told my family she would try to find other arrangements to pay off the loan. We have not heard from her or seen any money at all. What legal standing do we have to sue her for the money?

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by angeliahoke:
My father passed away in December 1999. Two years before he passed away he agreed to loan his niece, my cousin, $30,000.00 so she could use the money as a down payment for her house in Big Bear, California. My father used his house as collateral for the loan. The verbal agreement was that my cousin would make payments on the loan (the payments were sent to her from the bank) and pay the amount back to my father, in full, in two years time. The same month that my father passed away my cousin stopped making payments on the loan. We did not find out about this until the bank sent foreclosure notices on the house. We have since sold the house and had to pay off her loan. The same week that my father passed away she told my family she would try to find other arrangements to pay off the loan. We have not heard from her or seen any money at all. What legal standing do we have to sue her for the money? <HR></BLOCKQUOTE>

The estate of your father or the designated heirs are owed the money and has a right to sue for repayment of the loan and interest as allowed by law. File a complaint now so that a judgement lien can be placed on her property.

 

[JETX]

Do you have any papers on this 'loan'???
Such as, a loan or repay agreement, letters to/from your father confirming this loan, letter to/from the bank to confirm loan. Also, do you have a check or bank instruction on how to administer payments or payoff??

If so, then you should have sufficient proof of the loan and be able to pursue litigation to recover the debt. This should be done by the 'estate of _________, deceased'.

If you do not have any confirming papers, then you should send his niece a letter, tactfully discussing the loan that your father made and asking for repayment or some schedule of payments. Depending on how your niece answers the letter (if she answers), you should have enough to support the litigation.

Best of luck.... another reason why 'family loans' should be in writing.

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Steve Halket
Judgment Recovery of Houston
[email protected]
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!