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repayment of a personal loan

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I made a personal loan to a friend (to purchase a piece of land). We had a written agreement (notorized) that he would repay the loan within 6 months and pay at least $250 per month, with any remaining balance due at the end of the 6 months. I have yet to receive any payment and the loan is due the 1st of August. I have requested payment several times and he keeps putting me off saying he will pay on it in a couple of weeks, which he never does. What recourse do I have and do I have to wait until the entire amount is past due? Also, if it is not paid in full, can I put a lien on the property? The property was assessed at $25,000 and he owes me $4700. (This is in the state of Virginia).


Senior Member
1) What does the written agreement say regarding breach of the agreement?

2) Send your 'friend' a written demand letter. Send by certified mail with receipt of delivery. Detail the original terms, his failure to pay, what you expect him to do, etc.

3) Does the note state that the property is collateral or security? If not, your can't 'foreclose' on it. (In your letter, you might mention that you intend to foreclose on the property if payment is not made. It is probably a 'hollow' promise, but might wake him up.)

4) You say that loan is due on August 1. Is this the first payment or the final payment?

5) Is this a loan payable to you, or did you borrow the money from a 3rd party (making you liable to the 3rd party for payment)? If a 3rd party, you will need to make the payments out of your pocket (to protect your credit).

My opinion:
If your 'friend' doesn't pay you the 1st payment (or the 2nd, or the 3rd, etc.) and you decide to sue in the middle of the note, what assurance do you have that he will magically start paying the rest? You will have to sue each and every month for payment. Regretfully, you are going to have to wait until the full note was overdue to sue for the full amount.

Steve Halket
Judgment Recovery of Houston
[email protected]


Hi Steve- thanks for helping out. The original agreement read as follows "effective 2/10/2000 I ___ do hereby promise to repay _____ the total sum of $4700 beginning the month of March. This loan will be paid as expeditiously as possible with monthly payments no less than $250 per month. The period of this loan will be for six months or less until such monies are repaid in full. This is a business arrangement and will be handled in such a manner regardless of what might transpire in the personal relationship."
It was signed by both my friend and myself and notorized by a bank employee. I made the loan from personal funds and have yet to receive any payments, despite repeated promises of payment from him. Also, if I can not "forclose" on the property, if I have a judgement against him, am I able to garnish his wages if I have his employer names and his social security number? He works part time as well as being part owner of a painting contracting company. I hate to have to go to these lengths but money is money and I am curious as to what my rights are and what I need to do without spending a bunch of money to be repaid. Thanks for any help you might offer!

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