Case Type: Real Estate
Opposing Party: Debtor/Previous Property Owner
Our client foreclosed on an investment property, after it lent approximately $500,000 to the previous owner and he failed to make any payments. Once our client started foreclosure proceedings, the previous owner filed a petition for bankruptcy as a strategy to stop our client from obtaining possession to the investment property. After we continued to seek relief from the bankruptcy court, the previous owner realized he would be unable to stop the foreclosure and dismissed his bankruptcy petition.
After foreclosing on the investment property, the previous owner falsely claimed there were individuals living in the investment property as another strategy to stop our client from obtaining possession. We then evicted all individuals supposedly living in the investment property by filing an unlawful detainer action.
Once our client regained possession and started to remodel the investment property to sell, the previous owner filed a lawsuit against our client by alleging fraud as a strategy to record a Lis Pendens on the investment property so to stop any potential sale of the investment property. We then filed a motion requesting the previous owner post a bond with the court to allow the recording of the Lis Pendens during the lawsuit, which the court granted by ordering the previous owner to post a bond of $400,000.00 within 30 days.
Once the previous owner was unable to post the $400,000.00 bond, the Lis Pendens was expunged, which allowed our client to sell the investment property.