Legal Question in Credit and Debt Law in New Jersey

Re: Friend defaults on loan

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ANSWER:

You will need to file suit against your friend and obtain a judgment which, when properly docketed in the courts, will be a lien on property within the state. At least that's how it goes in NJ. If the property in NJ has sold already, you might want to now file suit in FL since his property is there and then follow through with that state's procedure for having the judgment placed as a lien on the property. You could also sue here and then have the judgment docketed in Florida. If the friend still owns property in NJ, you should file suit and when you get a judgment have it docketed in the Superior Court in Trenton. The friend will then need to pay off your judgment in order to sell the property free and clear of any liens. For the record, I always tell my clients if they lend money to family or friends treat it as if you are lending money to a stranger because you never know what will happen with your relationship in the future. You are lending to them, they should be more than happy to provide you with a mortgage and a note that can be recorded in the land records so that your interests are protected.