Legal Question in Civil Litigation in California

Let me get this straight. You lent your last nickel to some strangers who gave you a piece of paper in return. And now you'd like to get your money back. If the note says they have to pay you $2700 a month, and they aren't, then you need to sue them, if you know where they are or what assets they have. Good luck with that and watch out for legal time limits.

I'm with Mr. Stone on this one. I would just add that you fail to mention what security was given for the loan. It sounds like there actually wasn't any, but if there was, you should go after the security as well as sue for the debt.

You state that you have a "secured" note, but you don't state what the security interest is (i.e., what property or asset is providing the security?). Assuming that the security interest is perfected (the note may not do it) you can foreclose on the security. Assuming that the property has equity (i.e., is worth as much as or more than is owed on it to you and to others), and can be sold, that may give the cash that you need.

You may also be able to sue for breach of contract, but even if you win all you will get is another piece of paper (the judgment) stating that the other party owes you money. You would have more rights to enforce that judgment (wage garnishment, etc.) but if the other side truly can't afford much more than $500 per month (there are laws that protect judgment debtors so that you cannot impoverish them), that is likely what you will end up with.

In short, you should consult with an attorney about your options.

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If the borrower is in breach of the agreement, you can enforce the agreement by suing and getting a judgment, which you then will use to try to collect against their assets, including any real or personal property.

IF you have a legally valid and enforceable Trust Deed or other Security Interest, with enforceable rights against a specific piece of real estate or other property, you could declare default and foreclose on the property.

Either way, if you want to hire counsel to help you do so, feel free to contact me.

The answer to your question is going to depend on how the note is secured, and what the security is. There are different rules for foreclosure on real property that is security, and on chattel mortgages, which are personal property security agreements.