I walked into to a nightmare

[Dusty Willson]

Jurisdiction

California

I am living with this great guy, who happens to be paying a loan that he never took out on the property he inherited from his now deceased parents. The kicker is his parents also did not get the money!
His daughter and her, now ex, husband went to someone and borrowed, per Mr. M's words, "just under $100,000".
His dad and mom did sign some documents, however the loan has no term. It's a never ending loan with 12% interest.
Per Mr. M's calculations, the starting of the pay back is $190,000.
From 03/12/07-12/08/09 making 22 payments of $1900 each, his records show no deductions for that $190,000.
Instead, by 03/15/10 then amount has now become 194,000!

I guess my question would be how is this possibly legal? And how creative is this financing? And is there any legal remedy that will allow this nightmare to end?

As of 03/05/21- the family has paid Mr. M $155,899.99 + $7,020 in add'l fees for a total of $162,899.99.
$190,000- $162,899.99= $27,101.01
Mr. M's calculations state $91,814 is still owed....
So after all the years that the payments have been ( although they have not been steady in amount), the family still has not gotten to the original $90,000 borrowed?

 

[justblue]

I am living with this great guy, who happens to be paying a loan that he never took out on the property he inherited from his now deceased parents. The kicker is his parents also did not get the money!
His daughter and her, now ex, husband went to someone and borrowed, per Mr. M's words, "just under $100,000".
His dad and mom did sign some documents, however the loan has no term. It's a never ending loan with 12% interest.
Per Mr. M's calculations, the starting of the pay back is $190,000.
From 03/12/07-12/08/09 making 22 payments of $1900 each, his records show no deductions for that $190,000.
Instead, by 03/15/10 then amount has now become 194,000!

I guess my question would be how is this possibly legal? And how creative is this financing? And is there any legal remedy that will allow this nightmare to end?

As of 03/05/21- the family has paid Mr. M $155,899.99 + $7,020 in add'l fees for a total of $162,899.99.
$190,000- $162,899.99= $27,101.01
Mr. M's calculations state $91,814 is still owed....
So after all the years that the payments have been ( although they have not been steady in amount), the family still has not gotten to the original $90,000 borrowed?

Tell the great guy to either:
1. Join this site, under his own user name, as it is easier for the volunteers here to deal directly with the legal party.
Or, 2. Great Guy should take all documents to an attorney.

2 would be the best option.

 

[adjusterjack]

According to a loan amortization calculator a loan of $100,000 at 12% interest with $1900 per month payments should have been paid off in 6 years and 3 months.

That the balance grew to $190,000 tells me that there were significant periods when no payments were made and interest continued to accrue. If that's the case I'm surprised that the lender hasn't foreclosed by now.

Here's the amortization calculator that I used.

Mortgage/Loan Calculator with Amortization Schedule

I'm guessing that your partner has no documentation regarding this loan.

 

[Dusty Willson]

Tell the great guy to either:
1. Join this site, under his own user name, as it is easier for the volunteers here to deal directly with the legal party.
Or, 2. Great Guy should take all documents to an attorney.

2 would be the best option.

One problem he doesn't have all the documents. Even though he's requested them and I requested them on the 5th.

 

[adjusterjack]

Seems to be time for Great Guy to get a lawyer. Mr M appears to be a scammer.

 

[justblue]

One problem he doesn't have all the documents. Even though he's requested them and I requested them on the 5th.

You have no legal standing to request anything regarding this loan. The Great Guy should take any documentation he has...ie...cancelled checks, e-mails, text messages...ect..with him when he consults with the attorney. Is there a lien against the property?

 

[zddoodah]

per Mr. M's words

Who the heck is "Mr. M"?

His daughter and her, now ex, husband went to someone and borrowed, per Mr. M's words, "just under $100,000".

So...your boyfriend's daughter and her ex borrowed some money. What does that have to do with the property that your boyfriend inherited from his parents?

His dad and mom did sign some documents, however the loan has no term. It's a never ending loan with 12% interest.

That doesn't make sense. Do you have copies of these documents? Why did your boyfriend's parents sign them? And again, what does this loan taken out by your boyfriend's daughter and her ex have to do with the property in question?

Per Mr. M's calculations, the starting of the pay back is $190,000.
From 03/12/07-12/08/09 making 22 payments of $1900 each, his records show no deductions for that $190,000.

Huh? 22 x $1,900 = $41,800. The monthly interest on a principal amount of $190k at 12% per annum is $1,900. Are you saying that someone made interest only payments for the first couple years?

Of course, at the end of your post, you indicated that the original loan amount was $90k, not $190k. Monthly interest on $90k at 12% per annum is $900.

I guess my question would be how is this possibly legal?

No one here could possibly have the slightest idea. Your description of the terms of the loan and how much was paid and when is completely lacking.

And is there any legal remedy that will allow this nightmare to end?

You mean besides paying off the loan?

As of 03/05/21- the family has paid Mr. M $155,899.99 + $7,020 in add'l fees for a total of $162,899.99.
$190,000- $162,899.99= $27,101.01

Well...presumably, the "add'l fees" would not reduce the principal, and your calculations don't appear to take accruing interest into account.

I'm not sure what you hope to accomplish by posting here. Someone who understands how accruing interest works needs to review the loan documentation and the 14-year payment history (sure hope someone has good records of all payments made) to determine what the current balance is.