What can be done regarding false collateral for a loan?
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What can be done regarding false collateral for a loan?
I loaned someone $12,500 and they promise to pay me $20,000 in return. They drew up papers claiming a 2nd deed on a home in MD. After the loan I did research and found out that someone else had a 2nd on the same house. He was supposed to be selling this house returning me my money back to me along with the profit by 05/31/10 per our written agreement. Can I file criminal charges and a civil lawsuit against him?
Asked on September 26, 2010 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
1) If they do not pay you the money owed, you can sue them for that money.
2) You could possibly also sue to rescind the agreement and get the money back immediately, on the grounds that you were induced to lend the money by fraud--by a false representation that there was collateral for the loan.
3) If you don't end up getting the back fairly volunatarily--i.e. you ask for it, per 1) or 2) above, and the borrower pays it--you may be able to also go to the police and file a complaint for fraud. (If you are given the money back more-or-less voluntarily, there's no crime.)
You should speak with an attorney to discuss the exact situation determine your best options. Good luck.
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