Legal Question in Real Estate Law in California

Re: real estate-california

This must be a purchase-money loan from the seller (you), since you say you don't want the property back. You are probably going to be ineligible for a deficiency judgment or to proceed against any of the borrower's other assets. In addition to selling your note to a speculator as a deep discount as suggested by Mr. Shers, it looks to me as though your only alternative may be to foreclose. This does not inevitably mean you will get the property back; someone may outbid you. The probability of this, or of some other favorable result, will depend upon what other financing or liens are senior (or junior) to your note, and the current market value of the property. Sorry, there are no magic solutions for recovery on a defaulted note.

I might add that if the borrower committed provable fraud on you, as by giving you false credit information, you could sue for fraud to recover your losses.

Re: real estate-california

The only way you would get the money quickly is if he could sell one of the homes or you sell the note to people who buy them, but at a a steep discount and maybe reserve the right to foreclose on him or if them foreclose and get anything they have to pay you something back.