OfflineI know this isn't a real estate topic but I need some advice. I loaned money to a man who has been doing business in my area for over 40 years. He is actually a real estate broker and mortgage lender with a brick and mortar business. He got may husband and I into a terrible cash out refinance loan and later asked to borrow some of the money. He took advantage of the fact that he's been in business for so long and that we were unsophisticated in being lenders. The worst part is that a few years later he filed chapter 7 bankruptcy. He reassured us he intended to pay us in spite of the s bankruptcy. Of course, that never happened. I spoke with some attorneys in my area and I was told there is nothing I can do. Does anyone have any ideas how I may be able to recover even part of my money?
Unless you were there in the bankruptcy court hearing pleading your side of the case, I imagine your attorneys know more than anyone (and since I can't give legal advice). Legally you probably can't do anything. Chapter 7 wipes out debt and can also be a liquidation of property.
Morally and ethically, you can only plead to his good side and his verbal promise that maybe some day he'll come back around with a payment. Just don't hold your breath. If he went bankrupt, he's starting again at the bottom.
You are right. You should of had him sign something.
Donald Myers
We were at the bankruptcy hearing and,of course, we were told just what you said, Chapter 7 wipes out the debt. I just want to exhaust every avenue. He doesn't seem to be at all bothered by what he's done so we will probably just report it to the IRS as his income and move forward with a lesson learned. Thanks
Donald
He signed a second (or third, or fourth) mortgage note on his primary residence which ended up in foreclosure.