All Forum Posts by: Chris Fuller

Hello,

I will answer your questions here Shortly. See attached and this will help. I have been having people reach out to me direct and sending me NEW case law. Please see the link for Missouri "Exempt Person"

https://revisor.mo.gov/main/OneSection.aspx?section=443.703

Peerstreet Loans

https://www.reuters.com/article/us-health-coronavirus-colchiscapital-exc/exclusive-eyeing-defaults-us-direct-lender-colchis-capital-to-shut-funds-idUSKBN21P21X#:~:text=BOSTON%20(Reuters)%20%2D%20San%20Francisco,to%20materials%20reviewed%20by%20Reuters.

https://www.nasdaq.com/articles/exclusive-u.s.-sec-steps-up-scrutiny-of-private-debt-financial-games-2020-03-11

FCI servicing has cases mounting as well. Some to watch

https://www.classaction.org/news/suit-alleges-fci-lender-services-tried-to-collect-illegal-interest-late-fees#:~:text=FCI%20Lender%20Services%2C%20Inc.%20is,FCI%20Lender%20Services%2C%20Inc.&text=A%20proposed%20class%20action%20citing,alleges%20FCI%20Lender%20Services%2C%20Inc.

https://trellis.law/ruling/18STCV08781/ASHLEY-PEREZ-VS-FCI-LENDER-SERVICES%252C-INC%252C-ET-AL./20200630ed92d0

https://dockets.justia.com/docket/california/caedce/2:2020cv01463/376213

Levbern Properties, LLC, et al. v. Anchor Loans, LP (Bankr. C.D. Cal. – Besorat Investments, Inc.) – Levbern makes arguments challenging Anchor’s business practices, its relationship with the debtor and allegations that Anchor encourages borrowers to have junior lienholders put up funds that were ultimately not repaid. This case was not litigated. Anchor did not even file an answer and there is no attorney who formally entered an appearance.

I would stay away!! Peerstreet buys Alohas notes and Aloha still tries to service the debt that is not theirs. This is illegal!! They are a lender that will set you up for failure. They are currently in litigation with many borrowers and investors that have been taken advantage of. I have been wanting these loans paid off for a year but they continue to collude with another lender "Anchor Loans" to try and "strong arm" me into dropping my case. Please make sure your attorneys research the lenders Federal pending cases and the state in which they operate in.

Anchor does many things that are not above board. They sell the notes and service debt that is not theirs. They short the investors that give them money which are called "Junior Lenders". This is illegal!! They are a lender that will set you up for failure. They are currently in litigation with my company and they want me to drop my case against them in exchange for payoffs. Really!! I have been wanting these loans paid off for a year but they continue to collude with another lender "Aloha Capital" to try and "strong arm" me into dropping my case. Look up "RICO" and you will see that lenders with these tactics fit right in the "RICO" charge. Contact me if you have been forced into "Deeds in Lieu" and or Bankruptcy. Have your attorney look up cases where Anchor Loans was the defendant and you will see the trend. We have gathered information from other victims and will not stop. Check outhttps://www.hardmoneyhome.com/lenders/view/anchor-loans

https://www.facebook.com/hardmoneylendervictims

Tip of the day: Contract law does NOT supersede State law. Know your facts. Know your rights!!

How these lenders have skated around licensing in many states is because the "commercial loan" language but they really did not know is some states the exempt law state:

Exempt-
(d) Any person engaged solely in commercial mortgage lending or any person making or acquiring residential or commercial construction loans with the person's own funds for the person's own investment;

This is a case that is pending and should help explain the practices better.

https://www.docketbird.com/court-documents/Besorat-Investments-Inc/Complaint/cacb-1:2019-bk-10202-00366

I am seeing several big name lenders get sued for excessive rates, devaluing properties and putting borrowers in a worse position. I have experienced myself with hard money that they will not pay out the construction draws as outlined in agreement pushing borrowers into foreclosure. Lenders forcing borrowers to sign forbearance agreements that are not in best interest of borrower. 

If you look up case law you will see the how many cases are getting filed against hard money lenders especially when a hard money lender has junior lenders that lend to them 'meaning the hard money company". Junior lenders have now started suing hard money lenders because the lender did not act in their best interest. 

I figured there would be others on Biggerpockets in similar situations, since there are so many legal cases ongoing, but it may be that Biggerpockets caters to Hard Money Lenders...

It seems that defaults using hard money are on the rise. Who is the best attorney to look into bad practices by hard money lenders? 

Has anyone sued a hard money lender or had any dealings with Anchor loans LP? I am seeing a trend with them on excessively high interest and taking advantage of borrowers in my opinion. It seems that even the 'junior lenders' are starting to fall victim to some of their practices.