Board Topic: Your property claimed on someone else's loan.
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Your property claimed on someone else's loan.

Posted by: Xenoran Sep 21 2004, 10:03 PM
Hello All,

I have a serious dilemma on my hands involving a “Consumer Loan” that was taken out by my mother and I am not sure what the repercussions of this loan are to me. The basic problem is that she had no property to use for collateral and choose not to use her car (if I am reading all of the paperwork correctly). Instead, she claimed my property which was of course purchased by myself of money which I earned, as hers. The loan was in the amount of roughly $1700 and it was a type of loan that’s targeted towards bad credit / low income bracket borrowers.

To give you a background on myself, I’m not very familiar with loans or the various types of loans. I am also not familiar with the full repercussions of defaulting on a loan. This is mainly due to the fact that I have no intention of using a loan myself or even thinking about spending money that I don’t have.

Unfortunately, from past patterns, it’s very likely my mother will default on this loan, which brings me to my question; what happens if she does default on this loan? Will I pay the price for it by loosing my property, even though I have all receipts to prove ownership?

Thank you and I’d appreciate any advice on this topic!

Posted by: loanuniverse Sep 22 2004, 07:57 AM

I can not help you in this matter as you need legal advice and I am not an attorney.

I can tell you that the smart thing for the lender to do would be to move against that property as soon as your mother defaults, which I suspect is their mode of operation if they target bad credit / high risk borrowers. Once it is in the lender’s hands it will be very difficult to get it back.

If this was done without your permission, you need to have a serious talk with your mother.

There might be some “legal clinic” where you can consult an attorney about this situation in your town.

Good luck.

Posted by: Commercial Lender Sep 26 2004, 10:01 PM
What do U mean by “purchased by myself of money which I earned, as hers” and how do you know there is a lien against your property? If you have not received any sort of written notice addresed to you, consider the possibility that you may just be being extorted. From a lending stand point pursuing a $1,700 loan even with interest is not worth putting liens on and pursuing property since just the legal cost would range $3,500+ for a lender and almost all lenders do not want the hedache of seizing property and managing/prcessing it for auction/sale.

Assuming the property is in your name, if you did not sign anything you have nothing to worry about…UNLESS your mother faked your signature. If that happed you have a very big headache because your credit score is also at risk. I don’t need to repeat that this is not normal and that if your mother did fake your signature she is facing legal charges. You should have a tough talk with your mother and immediately do this;

Find out how you are involved
Assuming u did not sign anything; ask her if your signature was forged. If she won’t say, find out who she owes money to and call them pretending to be a client, if you are a co signer you will be listed as a client. Pull a tri-merged credit report and check your credit to see if someone is pegging your credit for late payments on account other than the ones you are not familiar with.

Find out if there is any real threat
Aside from your credit history check, call a local title company (email me and I can give you a list depending on where u are) and order a lien search. They can check your property for any liens on it. If there isn’t then your mother is either lying to you or is misinformed or the lending company probably just took that info as a precaution. If this is the case, call the company directly and threaten to sue them if they don’t straighten it out (but be warned this may result in legal implications for you mother). If there is a lien, call any local lawyer, explain to him what the situation is he will send off a letter with a request to prove your acceptance of lien to the company.

Post back with any progress! Good Luck.

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