I Gave a Friend a Loan and he Used Equity on his Home as Collateral, Now that the Property is Foreclosed What Should I do?
|
Summary
A friend of mine borrowed $10K. The collateral for this loan was the equity in his house, however, his house has been foreclosed on now. I have a legal Loan Document signed by him. Besides a copy of the Loan, what other documents do I need to file at the local court house in order to file a claim to try to get some money back from the sale of the property? Deed of Trust? “Intent to Lien” form? “Intent to Redeem” form? |
“A friend of mine borrowed $10K. The collateral for this loan was the equity in his house, however, his house has been foreclosed on now. I have a legal Loan Document signed by him. Besides a copy of the Loan, what other documents do I need to file at the local court house in order to file a claim to try to get some money back from the sale of the property? Deed of Trust? “Intent to Lien” form? “Intent to Redeem” form?”
As a general rule, when a senior loan is foreclosed (I assume the mortgage was in place before your loan), the junior lien holders are out of luck. However, foreclosure laws are detailed and complex, so it wouldn’t hurt to do a little investigation. Start by contacting whoever is doing the foreclosure.
Bank’s Oral Promise as Good as Paper it Was Written On
If I file for Bankruptcy Can the Creditors go after my Property that I Share with my Brother?
What Happens in a Joint Ownership when One or More Owners is Deceased
For more on this subject check out these categories: Finances, Property, Repo & Foreclosure
A house attorney has answered this question. Contact This Author
State laws vary, and the above is intended as general advice, and not direct legal advice regarding any one particular situation in any one state. For direct personal legal advice related to your own situation you should consult an attorney familiar with the laws of your state and with your situation.
