Question:

Shalom,
I am about to inherit a Shtar Ribis that on which one of the co lenders is a not religious. It has on it a lien on a piece of commercial real estate. This document gives me a prior lien on the property than a second lender. Therefore I am happy to drop the interest but I want to redo the loan so that I do not lose my first rights to collect from the property.

Back ground:
In 2010 my father, may he rest in peace, was named K. F. lent $50,000 to his brother A. F. (who we never expect to be able to pay back during his lifetime). This loan was written as a loan of $100,000 because my father and his brother’s nephew J. S. also lent $50,000. There is a lien on commercial real estate. The original loan has was due for repayment in December 2015, which is also the due date shown in the Deed of Trust. The statute of limitations on a breach of contract, such as nonpayment of a promissory note, is 4 years. So you need to be aware that the note must either be paid or somehow renewed before the end of this year or you may lose any legal right to enforce it.
This nephew, an attorney, J. S. has a later loan to A. F. for $250,000 which he has as a lein on this property as well at a later date. I have a warm relationship with all involved.

What are my options to collect the principal?

Thanks so much– Tizke l’mitzvas

Answer:

You’re question isn’t clear. You ask if you can collect the principal-it is no problem-just because there was ribbis doesn’t make it that you can’t collect the principal. As far as interest you can’t collect for the past. However, you can make a heter issko with the borrower from now for the future. He has to make a kinyan i.e. he gives you a suddar and with that he can continue the arrangement-now as an issko. You should explain to him that now you are an investor and no longer a lender. However it is a continuation. If he refuses to do so you can demand repayment immediately. It shouldn’t be  problem here to keep your lien since the principal is a continuation and as far as the demai peshara you will get you deserve first choice bec. you are allowed to collect and the other lender is not allowed to receive any interest so you deserve it and he deserves nothing

Yosef Fleischman

 

Tags: forbidden interest ribbis

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