Legal Question in Credit and Debt Law in California

It is certainly plausible that the interest rate on the promissory note is usurious. A usury claim, however, does not impact your duty to repay the principal, and may not be enough to prevent foreclosure.

It sounds like you are a bit confused, however. If the note is truly "unsecured," then there is no way the creditor can foreclose on your house. That only happens if the note is "secured." On the other hand, the creditor could eventually use your house to satisfy any judgment he or she might obtain.

You need to speak with a lawyer who can advise you as to what to do, who can write an appropriate letter to your lender, and who can help you take appropriate action to protect your interests. I have some experience in usury claims, and would be happy to speak to you about this at a mutually convenient time.

Best of luck to you.