When you lend someone money, you expect them to pay it back. Unfortunately, that doesn’t always happen. Whether you make a loan to a friend, another business, or a business partner, sometimes that person or entity has no intention of repaying you or has fallen on hard times and lacks the means to make the payments.
You find yourself in a difficult position, made even harder if you offered a hard money loan to someone struggling to show creditworthiness. You may need to secure legal assistance for the collection of your money.
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What Does the Law Say About Recovering Loan Money?
Defaulting on loans is common in business relationships as well as with loans for property or construction work. Contractors often take money from investors and promise returns on their new venture, such as building condominiums. In all these cases, it is important to have a written agreement and documentation memorializing the loan in place, especially if you need to pursue legal action. Even for a small private loan, you should have taken steps such as:
- Preparing the promissory note.
- Preparing a mortgage or other security instrument such as a personal guarantee to aid in repayment of the loan if there is a default.
- Transferring the funds to the borrower.
- Collecting payment on the loan.
Disputes may arise at any time during the life of the loan, or they may occur after the loan reaches its maturity date and is due. A borrower’s failure to repay a loan should be addressed promptly and with clear action with the assistance of the experienced attorneys at Calabrese Law Associates.
What Legal Action Can You Take?
Assuming you have the proper loan document prepared, the lender can pursue a claim against the borrower to collect the loan monies or even foreclose upon a mortgage securing the loan. The first step is typically to send a loan default notice to the borrower. This tactic may prompt the borrower to honor their loan obligation and repay the loan.
How Can the Lawyers at Calabrese Law Associates Help?
Calabrese Law Associates provides efficient, effective, and thorough legal counsel to both lenders and borrowers in the private loan market. To save our clients the time and expense of litigation, we explore every option for resolution before pursuing judicial relief. We look at every available option, pushing for the one that makes the most sense for you and protects your interests.
Our office handles both private loan litigation and loan document preparation in the Massachusetts private loan area of practice. This litigation and transactional experience is essential to providing superior legal counsel to our clients on loan-related matters.
Contact Calabrese Law Associates
If you need assistance with a private loan money matter in Boston, the Greater Boston Area, or anywhere in Massachusets please contact us to set up an appointment. Our experienced team can assist you with recovering your hard-earned loan money.
This publication and its contents are not to be construed as legal advice nor a recommendation to you as to how to proceed. Please consult with a local licensed attorney directly before taking any action that could have legal consequences. This publication and its content do not create an attorney-client relationship and are being provided for general informational purposes only.
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