Hello!

Thank you for your response to my quest in trying to figure this out.

I would first like to provide a short summary that address’s your (welcomed) exclamation points:

A ‘friend’ fell on hard times that I later learned were due to sexual harassment in the work place (got fired) and a violation of a restraining order (got put in jail). Unaware of all the details, I believed the (very) sad story. A promissory note was created of which the terms and conditions were produced by him. The funds were used to pay mortgage on a commercial property he owned that was in foreclosure in addition to purchase a business that would generate immediate cash flow; the business also included a residential apartment which provided him a home since his was foreclosed on. In addition to the funds, I produced a resume for him (no typing skills to speak of) that provided him w/full time employment with a very good salary.

On a side note - I was hit by a habitual drunk driver (5 DUI's) that left me w/a severe brain injury (TBI). Part of the neurological permanent effects is that I have head tic’s - this is especially severe under stress. When the stress is in the red zone, the right side of my body stops responding - leg drags, arm (right handed) is limp. Another permanent effect is that my short term memory is obliterated - I recently learned that I have all the signs for dementia and am at risk for early dementia.

Unbeknownst to me at the time, he was writing checks from my account (of which I have copies of). Payments on the loan were originally scheduled to start Oct 15, 2012 however, no payments were being made. After a little sleuthing, I became aware that the business was doing very well and because many of the tenants give him cash for rent, he was pocketing loads of cash (which is untraceable for the IRS). He also purchased vehicles (Volvo’s) and other high priced items. I sent him a demand for payment of which was ignored. I retained an attorney and went through all the legal red tape.

The judge ordered mediation at which time the debtor gave me an ultimatum: “Accept my terms for the repayment or I will file bankruptcy and you will never see a dime”. One of those terms included that I do not press criminal charges against him for the checks he wrote (I showed him the copies of my checks w/his handwriting). The terms also included (contrary to the Agreement) that he would pay no attorney fees. Those too were at my costs :-(

This money was my life savings - because of my TBI, I can only work from home and only on a part-time basis (and yes, he knew this). I have since discovered he has done the same scheme with several others - to an excess of $800,000.00 - nearly all of whom were seniors or those w/disabilities including his +90 year old parents (! This all deserves an exclamation point!). The one that wasn’t a senior (or w/disability) was another person that also fell for the sad story. She too lost everything including her home (foreclosed on).

I did meet with the local D.A. (seeking criminal charges was just as important as getting my savings back) of which I was told that regardless of an agreement which states I cannot pursue criminal claims, no office (attorney) can dictate who the D.A. prosecutes. I wouldn’t have agreed to the new terms if criminal action could not be taken but thankfully I was assured by the D.A. that my signature on the agreement would not prohibit me from pursuing criminal action against him.

That said, your questions and my answers about the NEW terms of the loan after mediation:

1. Loan amount to repaid starting in Aug 2014. Is it still $49,449.95?(!)
Yes. His terms included an interest free loan from 2012 through July 2014 (no interest until July 2014).

2. Loan amount to repaid starting in Aug 2014.
Repayment start date was July 7th and on the 7th of every month thereafter.

3. Term of the loan in months, Is it still Jan 2016?(!)
A: The interest rate is 7% - no late fees. The term is from July 2014 - Jan 2015
(7 months). (No surprise given the amount of cash he pockets on a weekly
basis)!

4. Date of the last payment. Is it still Jan 2016?(!)
A: The last payment date is Jan 7, 2015

5. Monthly payment. Is it really $418?(!)
A: Yes, yes it is (!) I get sick every time I think it.

6. Final balance of the loan ("balloon payment"). Is it still zero?(!)
A: The full amount is due Jan 7, 2015.

Again, No surprise given the amount of cash he pockets on a weekly basis!

In addition to his terms, I required a “good faith gesture” in the form of an extra payment in the amount of $1,000.00 due on July 21, 2014 (my home was in foreclosure). I also insisted that upon any default of this “new agreement”, the amount owed will be increased to the terms of the prior Agreement (interest rate, late fee’s, etc). I was able to put a deed of trust against the commercial building that I saved from foreclosure in addition to a confessed judgment, and a guaranty - all of which was detailed in the Settlement Agreement.

Unbelievably, he has so much cash now that he contacted my attorney last month to ask me that if I would reduce the amount owed by $5,000.00 he would be happy to pay it all in full immediately. My response was unequivocally “NO”.

As I am reading/providing this information, I read your text 1 paragraph at a time and respond (1 paragraph at a time) - this helps me (and the reader) to write/think as logically as I can and I just read your part about my comments on sheet 2 -

Ha!
I take much longer than I used to in writing and getting my thoughts out- That sheet was used to help me post my thread and I was supposed to delete it after I was successful in posting it. My short term really stinks.

Old Terms of loan:
Amount: $49,449.95
Interest rate: 7%
Duration: 36 months
Loan start date: January 17, 2013
First pay date: February 15, 2013
Subsequent pay date: 15th each month
Scheduled pmnt amount: $1,526.87
Maturity Date: October 15, 2015
Late Fee’s apply 1%

New Terms of loan:
Amount: $49,449.95
Interest: 8%
Duration: 7 months
Loan start date: July 7, 2014
First pay date: July 7, 2014
Maturity Date: January 7, 2015
Subsequent pay date: 7th each month
A one time payment of $1,000 on 7/21/2014
No Late Fee’s apply


***Old terms go in effect upon default of new terms*** he has defaulted by not making the payment on time.


I haven’t yet reviewed your worksheet - but will do so today. Again, your response is most appreciated - especially the exclamation points !!!!!!