Legal Question in Real Estate Law in California
I started Bldg. Co. Inc. it borrowed from a now bankrupt hard money lender to build a subdivision. 20 investors gave money to lender who made the loan. Loan used to purchase property, design and win approval of subdivision, lender also made monthly interest payments to investors from their loan proceeds which he managed. All monies taken by bldg co. inc.accounted for in project expenses. Economy collapses property now worth far less than owed on it. Investors serve bldg. co. inc with judicial foreclosure. Only 2 of 20 investors listed in preliminary title report as investors, so paper work incorrect, Is this enough to get current complaint tossed? Bldg co has great 35 year reputation and some good pending jobs but no assets or ability to pay if investors awarded a judgment. How hard is it to get judicial foreclosure and judgment? IF bldg co has to go BK Should BK only take place after any judgment? does this prevent investors from coming after principals of bldg. co. inc.? How does BK affect Contractors license?
3 Answers from Attorneys
This question is too complex for an off-the-cuff answer. An attorney will need to look at the court documents as well as any other information pertaining to the transaction. I doubt if it would get "tossed", but the complaint may not be perfect, and subject to a demurrer or motion to strike.
It needs to be aggresively defended. In this particular scenerio settlement should be carefully considered. The complaint needs to be reviewed; rarely will a demurrer dispose of a matter. An answer likely will be eventually needed, when doing so be sure to raise all possible affirmative defenses to leave all issues open. As you are a company, you cannot act in pro per. Contact me directly.
I have dealt with matters of real estate investment, judicial foreclosure, and related litigation. If nobody fights against the suit, it may be very easy to get a judgment, possibly against all the parties involved - I cannot tell without seeing the complaint. Doesnt matter if the parties feel like they dont have any money, because the judgment will be good for life, and they will be able to collect against you for that long. In some cases, people can come after you even in BK, such as if they allege fraud. If you are serious about protecting your interests, contact me.
Best,
Daniel Bakondi, Esq.
415-450-0424
www.danielbakondi.com
The Law Office of Daniel Bakondi
870 Market Street, Suite 1161
San Francisco CA 94102
IMPORTANT NOTICE: This communication may contain confidential information, privileged information, or attorney work product. If you are not the intended recipient or received this message in error, any use or distribution of this message is strictly prohibited and unlawful. Please notify the sender immediately, and delete this message. No attorney-client nor confidential relationship is created through this communication. Nothing communicated or provided constitutes legal advice nor a legal opinion unless it so specifies and written agreement for attorney services has been entered into. Your issue may be time sensitive and may result in loss of rights if you do not act in time. Thank you.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
