Legal Question in Civil Litigation in California
My friends father passes leaves him the house, meanwhile a MortgageBroker/ Friend talks my unemployed new home owner friend into getting not one but three loans againest his house and also talks him into helping out the Mortgage Brokers friend who needs a loan for $25,000 to keep him home from going into foreclosure. Home Owner friend agrees to help Foreclosure Faced friend by lending $25,000 (Mortgage Broker friend made $5,000 from the deal??) with the understanding that the house would be saved and FF friend would then sell his house immediately and pay back all money with interest daily to HO friend. He has this in writing on a Promissary Note signed by FF friend and it was notarized. FF friend sells house, does not pay back HO friend, (HO friend trusts Mortgage Broker friend to file Lien on FF friends house to guarantee pay back of loan) Meanwhile HO friend loses house to foreclosure, does not know where FF friend is but is still in San Diego and Mortgage Broker friend moved to Vegas and works in security instaed of Mortgage. What avenues, if any, does my friend have? Unlimited Jurisdiction Civil Case? Statute of Limitations? Please advise!
3 Answers from Attorneys
A written agreement to repay a loan can be sued upon within 4 years of the breach of the agreement, but it is usually best to sue as soon as possible, as many judges view a delay as meaning that you do not really want the money or something is wrong with your case. If there was only a verbal agreement or nothing in writing as to the mortgage broker filing a lien, there likely is only a one year of statute of limitations for the non-bodily harm torts [you give no dates].
HO can sue in county where the FF house is or the contract was breached. He should sue both FF and MB, report MB to the Department of Real Estate to have his license removed if he still has one [long process], try to see if MB has any assets in California as once gets judgment against him would have to file in Nevada for sister state recognition of foreign judgment to try to enforce there.
I'm not sure what non-bodily injury tort Shers is thinking of. I see fraud and breach of fiduciary duty causes of action here, which are four and three year limitations.
Your friend has grounds for a fraud and breach of agreement based lawsuit. He'd better take action, sooner rather than later, against everybody involved in this. He has only three years to bring the fraud claim, and maybe 4 years on a written contract, 2 years on oral agreements. If he is serious about doing so, have him contact me.
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