Legal Question in Civil Litigation in New York
Loan to family member and he may not pay it back
My brother (23) and I (23, soon to be 24) lent my mom's husband $10,000 for home improvements so that his home would be more appealing to home buyers (it's currently been on the market for a 1 yr. & 1/2). We were told we'd have the money back w/ $3,000 interest in 6 months. its now 9 months later and my mom's husband walked out on her and I have a feeling he is not going to sell his home afterall. My mom had him sign a contract to pay us back by 5-18-07. This date is 2 days away and he has had no contact with us. What can I do legally if he doesn't come through on the 18th.
2 Answers from Attorneys
Re: Loan to family member and he may not pay it back
Based upon the facts you gave me, it would seem you could have a breach of contract case against him, especially if your contract you had him sign is legally binding. You could technically sue for breach in court and if you win (or if your mom's husband fails to appear) you could obtain a default judgment against him and essentially place a lien on the property. If your mom's husband attempts to sell the property at a later date, your lien/judgment would have to be satisfied before the house could be sold. I have handled these transactions in the past and would welcome the opportunity to provide you with further information if you are interested in proceeding. Please email me at the address below and I would welcome the chance to discuss this issue with you further.
Thanks for the question.
Re: Loan to family member and he may not pay it back
You may be able to a lien on the property before you win, at the time that you start the suit. I would be concerned, however, that the loan would violate laws against usury. $3,000 for a six month period on a $10,000 loan, sounds like a problem.
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