Two years ago, a friend borrowed money from me to purchase a house. I wrote a personal check (with the requested lump sum on it); and directly lent the money to him. He made a balloon note, signed it, and gave it to me. The note did not give me the mortgage lien on the property he purchased. At that time, I did not have any knowledge of private mortgage loans, so I did not know how to ask for protections as a lender. According to the balloon note, on 3-19-2017, this friend must return all the money he borrowed from me. However, when the returning due day is approaching, he today tells me that he can't return money to me on the due date. He tells me that he had recently quit his job. He also tells me that he will relocate to Texas soon. Because the amount he borrowed from me is not a small number (that is equal to 80% of the house payment), I am really terrified. Since the balloon note did not give me the mortgage lien on the property he purchased, I would want to know what I should do NOW in order to get back the money he borrowed. In addition, would you please also tell me how I should do now to gain back my mortgage lien on this house (in case he won't return money to me)?
I can predict what is going to happen. He is leaving the state and will file a Chapter 7 Bankruptcy(of course, no one really knows what he is actually going to do, but this is the most likely scenario). You need to retain and experienced MI foreclosure attorney to start a foreclosure proceeding on the house. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
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You need an attorney and need to have him give you a mortgage on the house or otherwise secure the debt due you. If he will not the you default him and bring a suit. You need an attorney now!
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You need an attorney now
Your friend is not a friend and you may loose it all if you do not act quickly.
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