Parents let my Uncle use thier house as collateral so he could open a small business?
My Uncle wanted to start a small water company and didn’t qualify for a loan. Since my parents have already paid off their house, he asked them if he could use the house as collateral. My dad didn’t want to have anything to do with it- but after months of nagging he finnally gave in. Now my Uncle is not paying the bills, and the lender is coming after my parents threatening foreclosure. My Uncle is not answering his phone so I Googled his name and found that he just recently filed for Bankruptsy (Chapter 13). Does anyone know how this would effect my parents? Do they have a leg to stand on?
Categories: Business Bankruptcy Q and A chapter 13, collateral, dad, foreclosure, parents, water company
Your parents volunteered to pay this if your uncle did not.
They have 2 choices. They can repay the loan voluntarily or they can allow the foreclosure to complete and loose the house.
Your father is a grown up, he knew the risk.
the house is gone. sorry
They will need to pay off the loan or get ready to move. Because the house is paid for, they can easily foreclose.
Nice uncle.
They need to see a lawyer ASAP and sue your uncle.
Talk with a lawyer ASAP. TODAY!!!
hunt down your uncle and take everything he has because he’s cost your parents their home
you need to start looking for a house or pay off the loan. you cant go to a lawyer because it was your parents decision. so get an extra job!!!!
I’ve been through chapter 13 and lost a house — it’s not the end of all life as you know it but it’s no fun either. This is a great lession for all of us, your father should have kept his foot down ( I mean WHY would the guy not qualify on his own? ) or at the very least he should have kept his nose in his brothers business constantly checking the health of his finances so when the business started getting into trouble he would have had early warning in time to do something about it. That’s water under the brige for your folks, but they will be able to rebuild their lives. As for your uncle I’d be ready to shoot him!
they will have to get a new mortgage on the property and pay off uncle’s loan if they want to keep the house