Legal Question in Real Estate Law in New Jersey

Debtor responsible for cost of debt collection?

Thirty years ago my ex-husband and I gave an attorney, who bought our office building, a second mortgage. He did not make all of his payments on time, and he did not pay the balloon payment that became due in 1996. Recently, the atty contacted us because he had a buyer for the building, and wanted to clear his title/this debt. We made an accounting of the total owed, and sent it to him. The deal must have fallen through, and the attorney has not responded to our demand for payment. My ex and I (and my husband) met with an attorney to pursue collecting this debt. A title search revealed that we are the only mortgage left on the building, and we would not face any obstacles in foreclosing. My problem is that history proves that my ex cannot be trusted, and therefore, I'd like to hire my own attorney (my ex is a disbarred atty). My question is, can we demand that the debtor -- the current owner of the office building -- pay for the legal fees we have to incur in order to collect this debt? If yes, what are our chances in being awarded the cost of the legal fees?


Asked on 4/17/08, 4:19 pm

1 Answer from Attorneys
Robert Davies The Davies Law Firm, P.A.

Re: Debtor responsible for cost of debt collection?

First, let me say that you are asking questions that any decent attorney should be able to answer by simply looking at the mortgage and promissory note.

The attorney you consulted did not answer these questions. Do not use this attorney.

If the mortgage and note provide for it, then yes you will be able to add the amounts for these items to the original and interest owed by the debtor.

Foreclosure in New Jersey is not easy, even for commercial properties, but it seems that you may have to use this route to collect. I am not certain, and I would urge looking at other avenues to force payment.

I suggest that you would be very wise to have an attorney working only for YOU to assist you. Your ex can get his own attorney if he chooses, at his expense.

I would be happy to assist you. Call if you would like, and we can speak briefly. You can then decide how you would like to proceed.

My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.

Disclaimer: Your question and any response does NOT create an attorney-client relationship between you and this law firm. You can not rely on the statements made by an attorney given over the internet. The response that you have received is based only on the small amount of information which you have provided. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.

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Answered on 4/17/08, 5:57 pm


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