California Hard Money Violations?

[Drew Hernandez]

Hi all, I have started running this by some local San Diego attorneys but wanted to get feedback from group.

Situation:

1. Homeowner owns a duplex in Lemon Grove, CA. Non owner occcupied.

2. 7 years ago, he received a private loan for a second trust deed. The loan was done by a California licensed real estate broker and attorney who did the loan under the name of what appears to be his lending LLC. The LLC shows active with the Secretary of State with this individual showing up as the agent for service.

3. The loan was at 12% interest. There was an escrow done but that appeared to be more so lender can verify title etc as there was no loan docs or disclosures done.

4. This lender has now started foreclosure proceedings.

My questions,

1. would love to get a referral for attorney versed in these matters.

2. Does homeowner have any leverage due to loan interest rate and lack of any disclosures or loan paperwork?

3. Are any of the infractions hampered by statute of limitations? It appears usury is only 4 years, but not sure if that can extended at all for extenuating circumstances.

Thanks in advance for the assistance.

[Account Closed]

I'm not an attorney but generally speaking if the loan was originated by a broker there is no usury violation and if it's truly a non-consumer loan required disclosures are minimal. And he isn't required to agree to a short pay.

"Loan Docs" that you say are missing generally include the note and deed of trust. I presume you have at least that much.

What violation do you believe has occured?