I have a hard money loan with which I purchased a property to renovate and sell. The property is currently on the market. The terms of the loan gave me 2 years to pay it off with a balloon payment and monthly interest only payments. After 2 years the lender suddenly came asking for the balloon payment. I told them they per California law I need to be given a 90 days notice, demand letter via certified mail, prior to the payment of the balloon. They think that I am taking advantage of the system and they have refused to cash my recent monthly interest only payment and want to foreclose. Do they have a case?
Unfortunately the "devil is in the details" so your situation will require you to retain the right type of attorney. Do not even think of handling a mortgage foreclosure case on your own, or there will be grave consequences. Only a CA mortgage foreclosure defense has the expertise to prevent you from having more problems than you can possibly imagine. To properly answer your questions and address your concerns, the best way to handle this is with an in-person consultation. You need to retain the best mortgage foreclosure defense attorney you can afford. You should not be restricted by geographic factors. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
If you found this Answer helpful, please mark it as "Best Answer" Please be advised that the answer above is only general in nature cannot be construed as legal advice, given that not enough facts are known. It is your responsibility to retain a lawyer to analyze the facts specific to your particular situation in order to give you specific advice. Specific answers will require cognizance of all pertinent facts about your case. Any answers offered on Avvo are of a general nature only, and are not meant to create an attorney-client relationship.
Whether a hard money lender or traditional financing a deed of trust in CA requires that the non judicial foreclosure process be used to repossess a property. The non judicial foreclosure process requires that a notice of default be recorded and served properly after 90 days of a default. Then a notice of trustee sale 90 days after the notice of default is recorded. Then 21 days later a trustee's sale can occur. In order for you to know if the lender broke any rules during the origination of the loan, servicing of the loan, or selling the loan on the second market you must retain an attorney verse in this area of law who can properly analyze all of these issues with the proper rules in mind. You should seek the advice of an AVVO attorney who provides free consultations. If you think this answer is the BEST OR HELPFUL PLEASE MARK SUCH. FEEL FREE TO LEAVE A POSITIVE REVIEW AS WELL.
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