Non-payment of Loan

What is the name of your state?
California

Someone owed me $40K and would not return the money. I know I have to send out demand letter 3x before any case may be filed. But I just do not know how to proceed.

The $40K loan and secured under a Deed of trustee as collateral. The lendee loaned the money to buy a foreclosed house with which she would see and when she does, she will pay me back. She is paying me an interest of $600 per month (verbal agreement only) She has already some bounced check which I kept. She keeps lagging in payment. Our contract is supposed to be up to Dece.2003 only, when I try to collect,she makes all sorts of reasons. What is my remedy? I do not know if this is still consider as small claims... please advise

Based on the contents of your post, it sounds like your 'loan' has a HUGE chance of becomming a loss. I urge you to take action immediately to try to protect yourself.

"What is my remedy?"
*** Contact an attorney NOW to try to protect yourself.

"I do not know if this is still consider as small claims..."
*** No, it is not. Small claims in California cannot exceed $5,000 in a claim. You can file as many claims as you want for up to $2,500 each. But you can only file 2 claims a year that ask for more than $2,500.

=( i knew it

Thanks for the advice. Problem is I do not know which attorney to go to. Sure, there are several hundreds of them but I would not know which one who will screw me up and I will end up with less amount of money than what i am supposed to get.

Any recommendations?

Re: =( i knew it

soharve said:

I would not know which one who will screw me up and I will end up with less amount of money than what i am supposed to get.

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My response:

What do you mean by that? Of course you're not going to get "what you're supposed to get" because you need to pay the attorney.

Also, I'm not quite understanding your post. You seem to have two "conditions" when the loan is due and payable in your contract - - one, that the loan is due in December 2003, and another that she will pay you when she obtains and sells the foreclosed home. Which is it?

Unless your contract has a "condition" that allows you to obtain attorney's fees and costs for collection and litigation, then you're the one who's going to pay an attorney to exercise your rights.

Further, even if you do win a judgment, who's to say whether she has the money to pay you, or whether she just won't file for Bankruptcy?

IAAL

Click to expand...

Am I in so deep.

Ok. The lendee used a collateral called "dee of trustee". She said that the 'deed of trustee" covers that she would not be able to sell the foreclosed property without me signing. Therefore I would get my money when she does sells her house. The 'deed of trustee' expired last Dec. 2003. Therefore, I do not know whether the deed is still good or not, she says it is. But i am not sure.

The foreclosed house isnt sold yet, therefore up to this point I do not have my money back.

She is continuously paying $600 every month but not without me asking for it with every blood , sweat and tears. It is always a pain in the neck to collect from her. Either she will issue a bounce check or she would lead around a wild goose chase looking for her and trying to contact her. She now would not even answer her phone. Looking the phone up at 411.com, there is nothing on it. Could it be a bogus phone? But when she calls, my caller ID would reflect the number she has given me.

My response:

Consult with a local Real Property attorney. Make that call today.

IAAL