Legal Question in Real Estate Law in California
I want to attach property...
I loaned $80K to a friend with a promissory note that listed my friend's house as security. He was supposed to pay it back in a year with interest in one balloon payment. It's been over a month since his payment became due and I want to sue him. Can I try to attach his property to place a restraining order and a lien on property or do I sue him for breach of contract or can I do both? What else can I sue him for?
3 Answers from Attorneys
Re: I want to attach property...
Breach of contract. After judgment may file abstract with county recorder. Contact me directly.
Re: I want to attach property...
The only way the "friend's house" is going to be security for repayment is if a Deed of Trust was given as security. If it was, then non judicial foreclosure is the way to go. If it was not, then it is not security for the loan.
If it was given, then you will give to a foreclosure trustee to proceed. This is assuming that there is sufficient equity in the house.
If it was not given, then you will sue now for breach of contract.
Re: I want to attach property...
You can not attach property until you have a judgment against the owner of the property. A restraining order is to keep a person a certain distance or totally away from something [a person or object]. A civil suit for breach of contract requires filing suit, serving the defendant, giving the defendant 30 days in which to answer, send out requests for admission and other legal discovery which he has 30 days to answer, then filing for summary judgment which might take another 2-3 months. That is why non-judicial foreclosure is a preferred remedy.
I assume you have tried to speak with him and he will not answer the phone or e-mail. Write [send by mail and e-mail and leave a phone message too] him that the money is due, you have gotten no responses from him as to why you have not been paid back, if you do not hear from him within 3 business days you will either have to foreclose or sue him.
Good luck