Need money back

[Needhelpplease43]

What is the name of your state? Minnesota
My friend had bought a house 3 months before he lost his job because of covid. He hung on for a little while, but eventually started falling behind. I lent him a little here, a little there and then a lot. To pay mortgage, taxes and utilities. In total $25,000. Now when I leant him a lot, it was with the agreement that he would put the house on the market immediately. When it sold I’d get my money back and we would both make a little. If they foreclosed he would walk away with nothing. That was 6 months ago. He is now 6 months behind on his mortgage, again. He hasn’t paid a single thing, not electric, gas, water, trash…for 6 months. And He is trashing the house, letting it fall into complete disrepair. If I sue him for the money, even if I won, he doesn’t have any money, a judgement does guarantee payment, it’s not like I would walk out of there with a check. And If he agreed tomorrow to put the house on market it’s so dirty, stinky, and broken, all the equity is gone, it’s not worth anything. What I would like to know is, if there is a way to force him out of the property, so I can go in, fix what needs to be fixed and sell it.. At least get some of my money back. I don’t have $25,000 to lose. Thanks in advance for any advice

 

[quincy]

What is the name of your state? Minnesota
My friend had bought a house 3 months before he lost his job because of covid. He hung on for a little while, but eventually started falling behind. I lent him a little here, a little there and then a lot. To pay mortgage, taxes and utilities. In total $25,000. Now when I leant him a lot, it was with the agreement that he would put the house on the market immediately. When it sold I’d get my money back and we would both make a little. If they foreclosed he would walk away with nothing. That was 6 months ago. He is now 6 months behind on his mortgage, again. He hasn’t paid a single thing, not electric, gas, water, trash…for 6 months. And He is trashing the house, letting it fall into complete disrepair. If I sue him for the money, even if I won, he doesn’t have any money, a judgement does guarantee payment, it’s not like I would walk out of there with a check. And If he agreed tomorrow to put the house on market it’s so dirty, stinky, and broken, all the equity is gone, it’s not worth anything. What I would like to know is, if there is a way to force him out of the property, so I can go in, fix what needs to be fixed and sell it.. At least get some of my money back. I don’t have $25,000 to lose. Thanks in advance for any advice

No. You cannot force him to out of his house or force him to sell his property.

And you could even have a difficult time trying to recover the money you loaned him through a lawsuit, if you do not have a written agreement detailing the terms of your loan.

 

[adjusterjack]

I don’t have $25,000 to lose.

Then you didn't have $25,000 to lend and were foolish to do so.

What happened to you was predictable the first time you gave money to somebody who was floundering financially.

 

[Needhelpplease43]

What is the name of your state? Minnesota
My friend had bought a house 3 months before he lost his job because of covid. He hung on for a little while, but eventually started falling behind. I lent him a little here, a little there and then a lot. To pay mortgage, taxes and utilities. In total $25,000. Now when I leant him a lot, it was with the agreement that he would put the house on the market immediately. When it sold I’d get my money back and we would both make a little. If they foreclosed he would walk away with nothing. That was 6 months ago. He is now 6 months behind on his mortgage, again. He hasn’t paid a single thing, not electric, gas, water, trash…for 6 months. And He is trashing the house, letting it fall into complete disrepair. If I sue him for the money, even if I won, he doesn’t have any money, a judgement does guarantee payment, it’s not like I would walk out of there with a check. And If he agreed tomorrow to put the house on market it’s so dirty, stinky, and broken, all the equity is gone, it’s not worth anything. What I would like to know is, if there is a way to force him out of the property, so I can go in, fix what needs to be fixed and sell it.. At least get some of my money back. I don’t have $25,000 to lose. Thanks in advance for any advice

No. You cannot force him to out of his house or force him to sell his property.

And you could even have a difficult time trying to recover the money you loaned him through a lawsuit, if you do not have a written agreement detailing the terms of your loan.

 

[Needhelpplease43]

I do have contracts for all the times I leant him money, but like I said even if I sued and won that doesn’t guarantee I am actually going to get paid. That why i am asking what my legal options are, I knew forcing him out was a long shot

 

[adjusterjack]

Well, if you won't sue because you know you'll never collect, I can think of only one other option. Buy the house from him, fix it up, live in it until it's worth enough for you to recover your money.

 

[quincy]

I do have contracts for all the times I leant him money, but like I said even if I sued and won that doesn’t guarantee I am actually going to get paid. That why i am asking what my legal options are, I knew forcing him out was a long shot

When the house is auctioned off in a foreclosure sale, purchase it, fix it up, sell it at a profit. The bank just wants its money back so auction bids should start at somewhere slightly over the balance owing on the mortgage loan.

You made a costly (although perhaps understandable) error in loaning money to your friend who was unemployed due to circumstances outside his control. You potentially could sue him and, if you are successful with your suit), you could hold onto the judgment until he is once again employed.