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Hey, I am working with 2 other people to open up a business in San Diego, CA. We are looking to get a loan for 110k from an investor. As part of the agreement they would need a personal guarantor of the loan. Due to various circumstances the perso...
I don't understand the statement that your two other partners (using that term loosely) can't "qualify" to give a personal guaranty. If the lender is willing to make the loan with you as the only guarantor, that lender will certainly accept a guaranty from two additional people.
As a guarantor, you will owe 100% of the amount due on a defaulted loan, even if you have, say, only a one third equity interest in the business. You have no right to recover contribution from your partners if neither of them sign a guaranty. As to anyone who does sign a guaranty along with you, you are entitled to recover contribution from them only if you actually pay to the lender more than your share (as allocated between the total number of guarantors).
You can have an agreement between people to contribute to your legal fees and liability on the guarantee, even if you pay less than your share. This indemnity agreement would not take the form of a guaranty. It most certainly should be prepared by a lawyer. If I prepared it, it would probably look scarier than a guaranty would.
was loaned money by relative to help purchase a home, but now do not have the money to repay,
Whether a creditor is barred from suing by the statute of limitations depends on many factors. If the debt is not evidenced by a written instrument, limitations expires two years after default. If the debt is under a written instrument such as a promissory note, limitations expires four years after default, unless the promissory note is a negotiable instrument (payable to the lender "or order") in which case the limitations period is six years. Specifically acknowledging a debt in writing can start the four years running all over again (if it didn't expire in the first place).See question
I lend a very large sum of money over a period of years with promises from the taker. I would like to sue for return of loans
An attorney can be certified as a specialist in the area of creditor rights. This insures that you will retain a lawyer with experience in the field. I suggest that you go to https://members.calbar.ca.gov/search/ls_search.aspx and search for a creditor rights specialist.See question
Hello there! I'm thinking about staring at new career as a RE Mortgage & Equipment loan brokerage nationwide, I live in California & I have been doing some research & some say I DO NOT need any type of license to operate my business & others say ...
As to equipment loans, obtain a California Finance Lender license. Among other things, this license provides an exemption for the usury law.
As to California mortgage loans, start with a broker's license from the Bureau of Real Estate. If you broker loans to out of state borrowers, those states will have their own licensing requirements.
If you plan to work with residential loans, you are further required to obtain a Mortgage Loan Originator license endorsement. This is part of the National Multistate Licensing system.
Please be aware that particularly with respect to residential mortgage loans, licensing requirements are just the tip of the regulatory iceberg. Originators of residential mortgage loans are required to comply with Truth in Lending, RESPA, HOEPA, and reams of regulations promulgated under those statutes by the Consumer Financial Protection Bureau (CFPB), created under Dodd-Frank. These laws and regulations have teeth and must be complied with. Compliance burdens for residential mortgage lenders have become so burdensome as to drive most mortgage brokers from the business.
For the personal guarantee piece, what info should I be collecting from the guarantors to be certain that there is adequate liquidity to protect the loan amount?
As the previous answer indicates, you can require that the prospective guarantor give you a financial statement. Most individuals don't have financial statements already prepared, but you can obtain blank forms online. If you know that the person recently purchased or refinanced a home, you could ask for a copy of the credit application. Many people don't retain copies, though. You are authorized to pull a person's credit report in a situation like this - given that these are available online you can have them pull one up on your computer workstation. Get their written permission in advance and pull it yourself using the information they supply. Copies of bank statements are helpful, not foolproof, in confirming liquidity. California guarantees must contain special provisions to be enforceable. The loan documents should be prepared by a lawyer.See question
He will get a mortgage in due course and will pay me back but he is just getting married so I need to ensure that my money can be recovered in event of his death or other serious event
The documentation would include a promissory note and deed of trust. The loan should be funded through the purchase escrow, and the escrow instructions should require that you receive a lender's policy of title insurance (or a joint protection policy). The interest rate and other loan charges are limited by law. This is not something that you should do without the involvement of a lawyer.
I inherited a promissory note which is "secured by a second deed of trust" on property xyz. The promissory note was my father lending money to the owners of the property and their property was used as collateral by this second deed of trust. I hav...
When the answers refer to a "title report" they may mean "lot book report" or "property profile" These kinds of reports cost a great deal less than a full preliminary title report. That may show a recorded trust deed assignment that will identify the first trust deed holder.
As a junior trust deed holder you have the right to obtain information from the first trust deed holder by serving them with a Request for Beneficiary's Statement under Civil Code section 2943. The first trust deed lender is required by law to provide information including balances, any arrearages, a copy of the note and modifications, etc. etc. There is a monetary penalty for filing to respond to such a request.
Be prepared, however, to get the run-around as you try to determine who owns (and who services) the first trust deed loan.
A collection agency just called today to collect on a judgment from 2010 for 20K. I live in California & the Judgment is from Wisconsin and has never been posted to my credit, the debt is from 1993. The same agency tried to collect 2 years ago ...
I would be more concerned about owing $20,000 on a judgment than a black mark on my credit report. Have you pulled a free copy of your report to see if it refers to the Judgment? If the judgment was entered in 2010 and was reported to a consumer reporting agency at that time, it would probably still be on your credit report - they stay for 7 years.
A judgment entered in Wisconsin in 2010 probably has not expired in that state (I'm guessing, I'm not a Wisconsin lawyer) but in order to collect by, e.g., garnishing wages in California the judgment must be "domesticated" here. That means filing papers in the California court and personally serving you with them. The domesticated judgment is in effect a new California judgment. I don't know if the domestication of the judgment in California would be reported separately, commencing a new seven year period.
If you have no assets in Wisconsin, my suggestion is to sit tight and wait to see whether any action to domesticate the judgment is taken in California. If you ever do hear from a California attorney, you will have a chance to settlement that debt, likely by paying a fraction of what is owed.
Is it legal for a car finance company to charge interest on late charges?
I would say that question is not "compound interest" (which is interest charged on unpaid interest) but rather whether the finance contract calls for the imposition of interest on late charges, specifically, or "fees or charges" in general. Contracts like this are strictly construed against the company that prepared them. As to the suggestion above that you consult a lawyer about this, I assume that the amount of interest we're talking about here is extremely small and that this wouldn't be practical.See question
We recently completed a project where we supplied a new retail business with equipment and furniture. The original order was close to $100k. The customer received an equipment loan from a third party lender for the items they purchased from us. Ho...
You should NOT issue that check without permission from the lender. If the lender is really a lender and not an equipment leasing company, the equipment sold is now collateral for the lender's loan. The security agreement entered into with the lender will likely prohibit the sale of the lender's collateral without the lender's permission. If part of the sale is rescinded, the lender should get part of its money back. So your customer needs to go to its lender and ask how much the lender should be repaid in exchange for releasing that portion of the collateral. The practical answer is the same in the case of an equipment lease. A release of the lender's collateral would probably take the form of UCC-2 amendment to the lender's financing statementSee question