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Used car dealer gave me a $50,000 bad check in Ohio Business Debt, Collections

Discussion in 'Other Debt, Collection, Garnishment' started by robneff, Jan 27, 2015.

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  1. robneff

    robneff Law Topic Starter New Member

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    Help!

    I loaned a friend who owns a used auto dealership in Dayton Ohio, Montgomery County, $58,000 (a check for $50k and $8000 cash was given to him) to purchase cars for his lot in time for the spring tax sales rush because he had a pool of money coming in in March from a car loan company profit pool in the amount to cover my loan to him. He signed a contract and it was notarized. It states he will repay by the date of the check and if he fails to pay on time his home and any assets are subject to lien and his lot cars are (cars are subject to seizure at 50% of auction value.) to be turned over to me with clear titles.

    He gave me a check that I have in hand to cash next month for $50k to repay the loan and will pay $8000 cash like I paid him!

    I recently retired from the US Air Force and this was almost my life savings used to help a friend get more cars for his lot with a supposed secure pool of money coming in.

    He is hinting NOW that he is having a hard time (already had my $ for 2 months) and not sure if he is going to have my $ next month even though he stated its secure by a pool of $ he has coming back to him!

    Help! I cant afford to lose this money!
     
  2. txls

    txls Well-Known Member

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    He either pays you when due, or you grant him an extension, or you start proceedings to seize his property.
     
  3. army judge

    army judge Super Moderator

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    Unless your contract was reviewed by an attorney, don't expect the seizure to be that easy.
    In most cases, the lot assets are held in secured title by his lenders.
    This guy sounds leveraged to the maximum.
    I think you might want to have a chat with a few attorneys.
    I see a default in the loan coming, or a BK.
    Either of which I'm sure you'd find very disappointing.
    Don't loan money you can't afford to lose.
    Always pursue due diligence, don't take his word about the clear titles, for instance.
    Besides, if he ain't selling those junk cars, why would you be able to sell them?
    There are no iron clad protect your backside contracts.
     

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