Saturday, August 29, 2020

Business Associate Won't Pay Personal Loan, Gets House Taken


It's stories like this that can make people feel like the only people they can trust are themselves. This guy was borrowing money from tons of people, with what would seem to be no genuine intention of actually paying them back. Unfortunately, this guy's tactics didn't get the guy to reconsider his approach to life and finances. Oh well. 

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Text - r/ProRevenge u/TheBreakUp2013 • 4h + Join Business Associate Won't Pay His Personal Loan, So I Take His House This happened 13 years ago, but the details remain as clear as the average post-COVID day is long. For background, l'm an attorney and have experience in commercial lending. A business associate who had struck out on his own real estate development company approached me about borrowing a substantial sum of money (low 6-figures). I had it, but was hesitant. He was trustworthy, but

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Text - So, I asked for additional collateral. I put in the note that he would give me a mortgage on his commercial land and a mortgage on his $3 million house. I also put in that he would sign a quit claim deed to me on his house, but I wouldn't record it until he defaulted. He did all that I asked. For information, a quit claim deed transfers an interest in property like a regular deed, just without warranties regarding title, etc.

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Text - So the time came to pay off the loan (it was short term - 2 months), and he didn't have the money. I was understanding, but only gave him another week. In that week, I asked around and it turns out he borrowed substantial money from others and was living a high lifestyle off of the borrowed money while nominally keeping his development projects afloat. When a week came and he still didn't have the money, he gave me the sales pitch. He also told me he wouldn't be able to pay back all inter

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Text - As you can imagine, that set off a $hit storm. His lender on the house freaked out on him, he freaked out, and I got my money back, my interest, all of my costs, and a little bit extra for my time in less than 24 hours. Of course, I released the deed on his house as well. I was fortunate to get my money back. A lot of his other lenders, who didn't have my background and ability to navigate the situation, ended up with nothing. A few years later he ended up in prison for financial fraud. I

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