Lending money to friends & family

file_wizzard

clintus2 wrote:

A debt collection agency I have spoken to will take over the collection but will not buy the debt. and charge 20% against any monies collected (gulp)

Why do you need to involve a DCA?, your only real course of action is to "trust" that they will repay you upon completion ( if they can prove there is enough equity in the sale)

If not then I’m afraid the only thing you can realistically do is formally request payment, and if none is forthcoming issue a court claim for the amount outstanding, with a charging order attached to the sale of the property.

Not a nice situation to be in, but you have very few options

jonesMUFCforever

Make sure that you put a charge on the property until you get your money back.
Land Registry will advise you and you can download the forms from their site.

clintus2

ejones999 wrote:

Make sure that you put a charge on the property until you get your money back.
Land Registry will advise you and you can download the forms from their site.

excellent, thank you

clintus2

file_wizzard wrote:

Why do you need to involve a DCA?, your only real course of action is to "trust" that they will repay you upon completion ( if they can prove there is enough equity in the sale)

If not then I’m afraid the only thing you can realistically do is formally request payment, and if none is forthcoming issue a court claim for the amount outstanding, with a charging order attached to the sale of the property.

Not a nice situation to be in, but you have very few options

we would do that, however, we are in the situation where we could lose our house because we need the money to pay the mortgage. As I mentioned we have started our own business, safe (as we thought) that we would get our money and be ok til xmas.

clintus2

regularsaver1 wrote:

have they exchanged?

i don't know the cicumstances but,
i can't believe their attitude knowing that you helped them out

No the buyer pulled out. the agreement was that whatever happenned they would ensure we had the money by 15 September as that was when we knew our money would run out (budgetted).

Yes their attitude stinks, she has actually said that she doesnt care if we lose our house.

To be perfectly honest I have learnt a horrible lesson which will mean i am more cynical and hard when it comes to lending money. basically i wont do it.

mr218

Their attitude is dreadful. Is there some sort of jealousy or feeling of inferiority with them. It seems to me that on one hand they wanted your help, but once they got it they felt resentful of you and want to make you suffer.

In your place, i would investigate the legal options you have got, but try not to make the personal situation any worse. just try to retrieve your money with minimum fuss and then write them a letter to say that what you think. make sure you let your close relations know as well. everyone else whom you care about deserves to be warned.

Locana

Do you have any other family members that are on your side in this argument that could perhaps mediate? it seems such a shame that some people (your fiance's sister) would rather end a longterm relationship over money these days.. All the very best of luck and I hope you get your money soon..

Voyager2002

mr218 wrote:

Their attitude is dreadful. Is there some sort of jealousy or feeling of inferiority with them. It seems to me that on one hand they wanted your help, but once they got it they felt resentful of you and want to make you suffer.

It is entirely possible that they simply cannot pay. I assume that they were counting on the house sale for everything, and now do not know what to do.

At the time you made the loan, did they indicate what they would do to repay you if the house sale did not proceed? It is quite probable that they did not have any kind of Plan B.

Anyway, if they don't have the money then neither another family member nor a debt collection agency can get your money back for you. Your only option is to take a charge on their house to ensure that when it does sell, you will get your money. And be aware that putting them under too much pressure might make them less able to sell their house. Equally, try to avoid being too nasty, since they will always be family.

You should also make your own mortgage lenders aware of the situation, and hope that they will be reasonable with you.

westernpromise

Voyager2002 wrote:

Your only option is to take a charge on their house to ensure that when it does sell, you will get your money.

The risk being that they may accept the charge and then not sell.

westernpromise

clintus2 wrote:

A debt collection agency I have spoken to will take over the collection but will not buy the debt. and charge 20% against any monies collected (gulp)

Just add their 20% to the debt as a cost to you of collection.