Foreclosing on a note - deadbeat owner of RE companies


#1

Hi, this applies to CA.

For over 2 years, this multi-millionaire broker and owner of RE corporations has been ripping me off. It all began with him insisting that his escrow company be used. They had written up the contract, giving him the option not to pay years’ interest until the balloon payment would be due after 7 years @ 5%. Guess what? Neither was paid - not years’ interest, nor the balloon payment. (Which was way below FMV, BTW).

That 4-plex generates about $ 2,700 gross rent. Property tax is about $ 3,800 (trash service included).

The note is held by that same (…) escrow company. And there is supposed to be an assignment of rents clause which a lawyer agreed to enforce for $ 2,500 flat rate. But he dropped it.

Q: Who handles the foreclosures for the banks? There must be some foreclosure specialist law firms in San Bernardino county.

Q2: How much do you pay for this?

Q3: I’m deeply unhappy about the counter party - a licensed broker. Personally, I would return a property when I cannot make the payments.

Am bathing in shame and remorse


#2

CA AG’s possible interest?

All states’e Atty General’s offices are mucho leery about hustles like this one and you might want to give CA’s office in Sacramento a call about this.*

And in particular tell them about anything that the escrow co is doing that’s adverse to you as escrows are strictly regimented and regulated by the state and any irregularity might get them into hot water.

*CA is super friendly to buyer-victims who might have been in some way screwed by a “guru” type hustler like you describe so AG office will be most receptive to your call.

Good luck and let us know what happens on your deal.


#3

Thanks - will try that!

Much appreciated answer, John!