All Forum Posts by: Loretta Murray

Thank you all for your responses. 

We have a lawyer and are pursuing legal action. Is there anything else we can do to encourage the borrower to make good on his debt?

We are not sure about the value of the lots, but since they are undeveloped, they are worth quite a bit less than what is owed on the debt. Because the loan when on for years (trying to give the borrower multiple chances to pay), the interest added up and resulted in a debt that is higher than the value of the land.

The undeveloped land was the collateral on the loan. We now possess the land and are trying to market it. 

Is there anything beyond the legal system (but still legal of course) that we can employ to persuade the borrow to pays us back?

Several years ago, my husband and I used the majority of our retirement savings to make a private loan to a real estate developer for a single family home development in a very popular part of town. Years later, there has been nothing built and the borrower has defaulted. The borrower wants to pay us with the proceeds from the sale of the lots, but he has had no success over a period of years in selling any lots. Has anyone encountered this situation? How can we motivate this borrower to pay us back with real cash and not with future promises that might not happen?