Legal Question in Real Estate Law in California
hard money recovery
Hi
The following is a brief description of my situation.
I loaned 50k to a person (Paul) who had at the time a million dollars of assets.
In the next few months Paul started to miss payments to me. By the time I found out the house I had a recorded lien on went through the foreclosure process. I got Paul to sign a sales agreement to sell 2 of his houses but the one already went to foreclosure. My problem is the lenders will not respond to me or my realistate agent (Scott). When I finally talked to some one, they said because of the privacy act they could not give me any information. My agent (Scott) got a signed letter from Paul authorizing Scott to get the status and balances on the loan. Lenders still won’t help.
What are options?
3 Answers from Attorneys
Re: hard money recovery
Get the lender to state on what exact basis they refuse to give you the information since you have a release, do they require their own release form [many of them do], then demand to speak to their legal department. That probably will end up in no positive results. Then get Paul to call, with you or Scott on the extension, to get the information and/or make him show you the last statement he got. See if Paul has any assets not already encumbered by liens and get a first on that. You might want to file suit and get a stipulated judgment.
Re: hard money recovery
Why waste time with the lenders? What have they got to do with the money that Paul owes you?
Answer: Nothing.
Sue Paul now and secure yourself with a judgment. The sooner you get a judgment lien, the sooner you are in a secured position so that when the next property is foreclosed upon, you can stand in line to be paid (if there is sufficient equity).
Re: hard money recovery
File suit immediately against Paul. Subpeona power will provide what you need to get documentation. Contact me directly.
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