Legal Question in Real Estate Law in California
lent brother in law $35k down payment for house
I lent my brother in law $35k to be used for a business he was starting in CA. I did this using line of credit against my home in AZ.
He actually used the money for a down payment for a home they purchased in CA, $605k. I have nothing in writing, regarding the money they borrowed, except a vague promissory note he emailed me.
I was just informed they will be getting a divorce. My sister says she didn't borrow the money from me, he did. He's keeping the house.
This is by far the stupidest thing I have ever done and all of this makes me sick with worry!! My sister obviously doesn't plan to pay. I am scared when they divorce, he sells the house and leaves me stuck with the loan.
It us my understanding a deed of trust would help make sure the money they borrowed is paid if they ever sell the house.
Could you PLEASE tell me the process of getting a deed of trust filed in CA??
My brother in law will probably refuse to sign anything. Will my sister's signature be enough since they are still married.??.
Please help. Any information will be appreciated. Thanks so much.
5 Answers from Attorneys
Re: lent brother in law $35k down payment for house
If you lent him the money, you can still sue to get it back. If your brother won't sign anything, you are too late to get a deed of trust; that requires his consent. You should sue him as soon as possible.
Re: lent brother in law $35k down payment for house
File to enforce the note in the county the property lies. Call me directly at (619) 222-3504.
Re: lent brother in law $35k down payment for house
well, you don't need to really, really "stupid" you were. without a written promissory note signed by both, husband and wife, as debtors. now how really stupid were you, oy, lets say extreemly naivee (sp.) you need a deed of trust signed by either or both of the debtors to have a lien on the residence and if they won't sign one voluntarily you are sol.... you didn't give the terms of the note so if there is a default or breach then you can sue, sue and sue but not till then and from your ???? it seems not to be a clear enough note, which you should have prepared and made a preexisting requirement before the money changed hands --- possibley thing fraud if they represented one use and substiututed another --- basicly, hire a lawyer to aid you and explain all your rights based on the documention and facts --- now, yesterday and help yourself with an experts help since you now understand you are not that expert --- I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.
Re: lent brother in law $35k down payment for house
You can't get a deed of trust after the fact. They are filed with the permission of the debtor at the time of the loan. Your sister could have liability, because California is a community property state, and she benefited because the house was, by definition, community property.
You may need to file a lawsuit, and possibly file a lis pendens against the property to prevent its sale until any dispute is settled. If you win a lawsuit, then you can put a lien against the property.
In any case, you need help from an attorney.
Re: lent brother in law $35k down payment for house
Yes, your sister can help you without your brother in law. If the debt (loan) was for the benefit of the community (both spouses), your brother in law's signature or cooperation would be unnecessary.
Another thing you may have is a constructive trust. This is a remedy in which you trace the funds to the down payment on the house. Many times you can choose the asset over the funds. For example, you may be able to choose the house (subject to the current loans) instead of money for repayment. If the house has substantial equity, this may be very lucrative. At least the threat of this remedy may prove to be very successful in obtaining your brother in law's cooperation.