Update: EFI’s bankruptcy expectations

June 29, 2008

By KAREN VELIE

Estate Financial Inc. (EFI) will remain in bankruptcy for at least the next few months and at the same time independent evaluator Hanno Powell will continue his audit, the Fresno attorney said earlier this week.

A “complete evaluation” of EFI’s books was ordered during a June 16 San Luis Obispo Superior Court hearing. During that hearing, a group of investors requested the court appoint a receiver to oversee the company’s $170 million mortgage fund. A week later, the Department of Corporations, on behalf of the people of California, joined the plaintiffs in their request.

In an unrelated action, a group of creditors forced EFI into Chapter 11 bankruptcy proceedings in a Santa Barbara’s Central District of California United States Bankruptcy Court June 25. According to Powell, the bankruptcy proceeding would normally have canceled his evaluation, but he said this is not the case with EFI.

Under Chapter 11 bankruptcy, the court supervises the restructuring of the company and its debts, some of which can be partially or completely dismissed. Traditionally, the company comes out on top, followed by creditors, and then investors.

However, all creditors have a right to be heard by the court and receive fair and equitable treatment. As to EFI’s bankruptcy, investors may end up as creditors. EFI’s owners Karen Guth and Joshua Yaguda, if found responsible for the fund’s financial decline, may not fare well in the court proceedings.

“As the facts bear out, many investors may end up as creditors,” Powell said.

Two of the plaintiffs listed on the bankruptcy petition, James and Kathleen Scott, started as investors. However, the couple claims that because EFI failed to list them on the deed of trust on one loan and failed to pay them their proceeds on the sale of another, they are now creditors.

“No one can evaluate the effect on creditors until bankruptcy schedules listing all assets, liabilities, and creditors are filed with the court,” Powell added. “Because it is an involuntary bankruptcy, the schedule will probably take several months. I don’t know if anyone can give an accurate assessment of how this will affect the investors.”

Tags:, bankruptcy, EFI, Estate Financial, guth, paso robles, yaguda


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27 Comments

  1. ccn_debate says:

    Member Opinions:
    By: Anonymous on 5/9/08
    Interesting Legals in the Telegram Tribune. Notice of Trustees Sale on Loan B352-05 – B366-05 Signature Homes and Al D'Amico in the amount of $7,584,421.10 APN: 026-281-055/056 and Three Bells,B193-06 Karen Guth- Al D'Amico in the amount of $6,453,285.89 APN: 040-111-024. Open your eyes
    By: Anonymous on 4/28/08
    Mike says:

    Well now Karen and DOYA/EFI were very busy last week 4-17-08 dozens of filings were done on property. According to the County Recorder Julie many filings were done that day. There goes the money

    April 21st, 2008 at 6:16 AM

    Kelly says:

    Yes, they were very busy when i went to check on my deeds i learned the county recorder clerk Julie Rodewald has officially denied all the public access to check the records citing security and privacy reasons. So I tried on line at home and the county web site will no longer allow anyone to access the information. Again citing personal privacy not wanting the upset investors to know where people live or what deeds have changed she is no longer allowing full public access. So something is really wrong here.

    April 25th, 2008 at 5:52 PM

    By: Anonymous on 4/27/08
    There will be a hearing in SLO Superior Court on Tuesday, April 29, at 8:30 a.m.,courtroom D4 for a case Karen is involved in with her old husband, Charlie Applebaum. It might be interesting to attend and hear what the old gal has to say for herself and to glean information that may be helpful to us in filings of our own. You can check it out for yourself at: http://www.slocourts.net
    under "calendar", select "civil & family law by name" then scroll down to Applebaum and then scroll down to Guth. Hope to see you all there!

    April 27th, 2008 at 8:18 AM

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  2. ccn_debate says:

    By: Anonymous on 4/21/08

    IS GUTH ESTATE IN FINANCIAL TROUBLE? You bet!!!!!!!
    "Since last February 1, 2006, Estate Financial was a borrower from Heritage Oaks Bank on an unsecured line of credit in the amount of $5,000,000. Guth was a guarantor on the line of credit. About 11/15/07 EFI entered into a "CHANGE IN TERMS AGREEMENT" with Heritage Oaks Bank. "The third paragraph on the first page of the agreement describes the change in terms including an extension of the maturity to 11/15/08, that the loan is no longer a revolving line of credit and that collateral for the loan has been added which includes a deed of trust on each of the two gas station properties owned by Templeton Products, Inc.
    Can Heritage Oaks Bank sustain a $5,000,000 loss?

    LYING: Guth/Estate have no lawsuits against them. Here's two for you to look up – 6/22/07 Case CV070549 and 1/10/07 CV071107. The latter includes a cause of action asking the court to issue a permanent injunction prohibiting Guth and Yaguda from continuing to engage in unfair, deceptive and/or fraudulent business practices.

    Investors – you are LAST IN LINE as Guth/Yaguda have mortgage away EVERYTHING.
    By: Anonymous on 4/20/08
    Oh my G_d.

    On March 17, 2004 Karen Guth swears under penalty of perjury as follows:

    "EFI's largest asset is a note receivable from Republic Properties, which is not collectable."

    NOT COLLECTABLE???????????
    By: Anonymous on 4/20/08
    Quote Charlie Applebaum 12/2/2003 in a sworn statement in court in SLO County. Go to the court and see it for yourself.

    "The real reason Estate Financial has had to transfer "bad loans" to Republic for workout is that the Respondent (Karen Guth) decided to advance certain funds which were invested by investors on one project, to the builder on another project. This action is clearly inappropriate….."
    She has been committing this illegal act of commingling fund since at least 2003, so says her ex-life partner.
    By: Anonymous on 4/16/08
    There will be a meeting of the investors on the Hinds Ave.project in Pismo Beach. Loan #518-05 on Monday April 21, 2008 at 12 noon at the Colony Inn Hall; 3600 El Camino Real, Atascadero. It is located next door to the Kennedy Nautilis Center. 805-466-4449. The purpose of the meeting is to hear about the different options available to the investors, to hear from the investors as to what they want to do, and to vote on these options. It is very important that all voting investors attend this meeting. Karen Guth, EFI President, Tony Wells a developer, Madeline Winn the junior lien holder, Wyndham Resorts, and two other interested developers will be there to tell us what they have to offer.
    This meeting is definitely happening; if you want a voice in what happens to your investment on this project, then you should attend this meeting.You may e-mail me at bluesky41144@yahoo.com and put in the subject line, loan 518-05 or call me 805-610-6331
    By: Anonymous on 4/15/08
    I have sat back long enough watching these blogs, hoping against hope that these accusations against Estate were wrong. Well they are not wrong.

    I have just learned that Estate sold a property I have an interest in through a fractionalized first deed of trust. That sale occurred more than 6 months ago. I have not seen a penny of my investment and interest payments stopped late last year.

    Mrs. Guth – where is my money? Did you steal it?

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  3. ccn_debate says:

    By: Anonymous on 4/15/08

    ESTATE FINANCIAL LAWSUITS

    On April 8th two major subcontractors who worked for San Dimas 18, LLC sued San Dimas 18, LLC, ESTATE FINANCIAL, INC. AND ESTATE FINANCIAL MORTGAGE FUND, LCC.

    Why does that matter! Because other subcontractors will likely begin their own lawsuits. And the more lawsuits Estate has to defend the costlier it is going to be for all investors.

    Case # KC052088 and KC052068. Pomona court (Los Angeles County)Attorney for Plaintiffs is Jonathan Zeko -619-233-7078
    By: Anonymous on 4/11/08
    New uncoveredslo.com article/blog regarding Esate Financial at

    http://uncoveredslo.com/?id=94&showEntry=1
    By: Anonymous on 4/10/08
    MEETING

    DATE: Thursday April 17th
    START TIME: 2:30PM
    LOCATION: Atascadero
    Colony Park Community Center
    5599 Traffic Way
    Traffic way exit off of 101 Whether going N or S
    By: Anonymous on 4/9/08
    I attended the meeting yesterday with Karen & Josh.
    Please email me at jschacherer@hotmail.com, or call me @ (805) 710-3945 if you like to discuss the outcome of the meeting.
    By: Anonymous on 4/8/08
    Ron Cooper says:

    NEXT MEETING. Thursday, April 17th at 3 PM. Location to be determined in the next few days. Proposed agenda will be sent tomorrow.

    NO MORE TALKING. Time to vote on how to move forward. We need 500 people, so please start telling everybody.

    April 8th, 2008 at 9:34 PM
    By: Anonymous on 4/8/08
    E.F. mortgage fund forum….these were to begin on 4/1/08…has anyone been in the first round of these and how did they go?…how accomodating was karen guth in imparting relevant information regarding the fund?…any information would be appreciated, thanks
    tkh548@sbcglobal.net
    By: Anonymous on 4/8/08
    who could give us info about 155-06 to 186-06.
    we signed in january a document autorising EF to reconvey this loan and EF is now in 2nd position

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  4. ccn_debate says:

    By: Anonymous on 4/8/08
    HIND AVE PARTNERS LLL: B105-06 and 518-05. On 105-06 it looks as if more than 50% of the holding investors are against the 60% sell off, so that one has been stopped. B518-05 could still be sold off at 60%. There are over 180 investors in 518-05 and we have yet to contact all of them. There appears to be the potential of a better deal (78-82%) waiting in the wings. If you have not signed the 60% offer, please don't. It seem unlikely that the 60% bidder would drop all interest if we delay a few weeks. There are efforts underway to get a meeting of all B-518 investors together very soon. Watch this site for more info.
    By: Anonymous on 4/7/08
    Fund investors, please read this! Apparently no one has a list of investors so it's time we make one of our own! If you are new to this situation, Karen Guth has refused to give out the Fund investor list (as promised in her Circular) therefore not giving us a chance to regain control of our investments. I've arranged for an email account for you to write to. Please include your name, address, phone number, email account and any other information you would like to add. This is essential so you can be contacted. There's supposedly 1800 investors, so if anyone does have the list, spare me and let me know. Keep in mind, the phone book releases most the same info. Let's not waste anymore time! Send your info to effundinvestors@yahoo.com By sending your info you are not committing to any particular side or opinion. This list will also help individual deed holders in projects where Estate Financial has a majority control. Also, if you have given money to EF and you aren't sure if it's even invested in a deed or the Fund, please write.

    Individual deed holders – I also recommend that someone step up to the plate for the larger first trust deeds and do this for their individual projects as well.
    By: Anonymous on 4/7/08
    Fund investors, please read this! Apparently no one has a list of investors so it's time we make one of our own! If you are new to this situation, Karen Guth hasn't given out the list therefore not giving us a chance to regain control of our investments. I've arranged for an email account for you to write to. Please include your name, address, phone number, email account and any other information you would like to add. This is essential so you can be contacted. There's supposedly 1800 investors, so if anyone does have the list, spare me and let me know. Keep in mind, the phone book releases most the same info. Let's not waste anymore time! Send your info to effundinvestors@yahoo.com By sending your info you are not committing to any particular side or opinion. This list will also help individual deed holders in projects where Estate Financial has a majority control. Also, if you have given money to EF and you aren't sure if it's even invested in a deed or the Fund, please write.

    Individual deed holders – I also recommend that someone step up to the plate for the larger first trust deeds and do this for their individual projects as well.
    By: Anonymous on 4/7/08
    My personal opinion is that Laura Paulsen (and probably the rest of the crew) is hypnotized into believing that Karen and Josh are family. Or somehow she believes she is doing right by perfroming her tasks as told. Or perhaps the pay is just so tempting, that she wants to stay (greed) while she helps Karen break her promises to her investors. There is no possible way this girl is that clueless to the law. You'd have to be a 8 year old not to get what is going on there. I predict there will be serious legal/criminal trouble for her if she doesn't come clean. And Laura if you are reading this, your only slight chance of gaining any respect from this community is to do the right thing – quickly! The people of this community will never forget which choice you make! One will make you a hero, the other could be legally devastating to you! In no way is this a threat, it just reality. Karen Guth is not your 'mother.' Let her go, it's okay……. let her go….. I doubt Karen Guth will be faithful to you until the end. Chances are she'll try to blame others and you may very well be in the line of sight. Let her go……
    By: Anonymous on 4/7/08
    FYI or Mike,
    I am still trying to figure out who are the proactive players but I would like to participate.
    I may be able to help you with addresses of the projects in the FUND. If that will help please e-mail me your contact # and I will share what I know

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  5. ccn_debate says:

    By: Anonymous on 4/7/08
    Butch & Ron Cooper: Her name is Darla Hansen-lives in Paso area-no info on Ph# or address. It has been suggested she was terminated for disagreeing with Karen and Joshua on internal business practices, and for revealing to an investor information considered secret by Karen and Joshua. Laura Paulson is still employeed by EFI as funding administrator. Both are good for information under the right situation.8bdb6
    By: Anonymous on 4/7/08
    mike–how's the progress on the pictures?
    any response from your pointed questions to EF?
    Mike Knecht says:

    I am going to take and organize a collection of pictures of EF building sites and projects in thier current condition. Anyone with an address of one of thier projects please e-mail me. These picture and addresses wil be available to all investors.

    April 1st, 2008 at 8:32 AM
    By: Anonymous on 4/7/08
    Question for Rabbitt,regarding exemployee of EFI, Darla Paulsen do you have any further information on her wherabouts,or any other ex-employee's I would like to interview.
    By: Anonymous on 4/6/08
    new karen guth beach house purchase with your investment money–
    38-7th street cayucos, calif.
    By: Anonymous on 4/6/08
    barbara– good work–what were the lies?
    By: Anonymous on 4/6/08
    Thank you all for your direction so far.
    We have our family life savings in the FUND and have little experence with people like Karen and her son.
    We did get a list of the properties in the fund. I was with my attorney and we refused to leave the office with out it. Karen threw it at us and walked out. we have notes from that meeting and she was caught in several lies. If this is of any help please e-mail me at bcqueen@charter.net
    By: Anonymous on 4/6/08
    FYI the loan number was 576-05 Pierce Monte Vista
    By: Anonymous on 4/5/08
    I have a substiantial investment in; The Fund, Hinds Pismo,The Village Desert Hot Springs,Brisalera st.SLO, Pannon Design Tehachipi. I wish to be in concact with other investors
    Michael Donahue;mcdonahue@charter.net tel; 805-909-0509
    By: Anonymous on 4/5/08
    I have a substiantial investment in; The Fund, Hinds Pismo,The Village Desert Hot Springs,Brisalera st.SLO, Pannon Design Tehachipi. I wish to be in concact with other investors
    Michael Donahue;mcdonahue@charter.net tel; 805-909-0509
    By: Anonymous on 4/5/08
    I have a substiantial investment in; The Fund, Hinds Pismo,The Village Desert Hot Springs,Brisalera st.SLO, Pannon Design Tehachipi. I wish to be in concact with other investors
    Michael Donahue;mcdonahue@charter.net tel; 805-909-0509
    By: Anonymous on 4/5/08
    vince–the $20,000. what loan number?
    thanks

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  6. ccn_debate says:

    By: Anonymous on 4/4/08
    To: show me the money. Yes I have received a payoff for abot $20,000 two weeks ago. I also received a payoff on November 6th of 2007.
    my email is sales@aitcoc.com
    By: Anonymous on 4/4/08
    Gary
    It's possible to have 2 loan numbers on a property. The projects in Atascadero all had to loans on them. One usually identified as a "construction loan" and the other as "unknown." You could consider these as a 1st and 2nd loan. If it goes belly up usually the 2nd has the first option and if they do not take the oportunity to take over the 1st then the 2nd will usually "disappear."
    By: Anonymous on 4/4/08
    Gary: I agree regarding B105-06, (Hind Ave) why would you sell a property for 27% of it's appraised value to a "NEIGHBOR" without any onfo. (fees etc). and Karen being one of the borrowers? Don't sign!
    By: Anonymous on 4/3/08
    Gary, Dewdog,

    Can Karen have two different loan #'s for the Hinds project? Gary says it's B105-06 but we are invested in a loan with the same APN# under loan B518-05. What doesn this mean?
    By: Anonymous on 4/3/08
    Is Karen Guth still accruing a 1% servicing fee on our loans even if we're not getting any interest payments? Since she won't answer any of our calls, maybe we should all go down to the Estate Financial office together to get some answers. We'll see you soon Karen!
    By: Anonymous on 4/3/08
    HIND AVE PARTNERS B105-06 Info: project address is 150 Hind Ave w/ APN: 005-152-033. If you hold any TD's on this don't sign off on the short sale yet. More info coming.
    By: Anonymous on 4/3/08
    Gary,
    Are you referring to the Pismo Beach ocean fron hotel project? We are in the investment but our loan # is B518-05. Did Karen fund this with two different loan #'s? I don't understand.
    By: Anonymous on 4/3/08
    INVESTORS IN HIND AVE PARTNERS ALERT: Loan # B105-06: EFI wants us to agree to take 60% on sale of project. Please don't sign yes yet. It appears a 2nd TD holder is foreclosing and there maybe serious conflicts of interest. More info to come.
    By: Anonymous on 4/3/08
    WOW

    What does she have to hide? Your money.
    You all should have another meeting a seek legal advise and take action before your money completely disappears. Talk is cheap and accomplishes nothing.
    By: Anonymous on 4/3/08
    Hi all,
    I urge you to take the time to read this info via the DRE, very informative. I know much of this required documentation is often neglected by lending brokers. Many brokers are sloppy and arrogant, even if not crooked. Contact your broker and demand all documentation due you.
    http://www.dre.ca.gov/pdf_docs/re35.pdf
    By: Anonymous on 4/2/08
    Truman;

    Soon, for now just be patient. Things are hapening. Soon you'll learn and spread the word to other investors

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  7. ccn_debate says:

    By: Anonymous on 4/2/08
    Folks, I'm still lost. Karen Guth is still getting away with murder. And we continue to talk about it.

    I don't know what to do, but one of you must know how to stop this. I certainely hope so. Please let us know.
    By: Anonymous on 4/2/08
    Why Ms. Guth refuses to talk with the investors? When they gave her the money, she was eager and had all the time. Now, no time or answer.
    What does she has to hide?
    By: Anonymous on 4/2/08
    has anyone been paid back, partially or fully, on a loan through Estate Financial in the last 3 months? Other hard money lenders such as RPL are working their way slowly through the process, but I've seen no action with EF.
    By: Anonymous on 4/2/08
    If I buy a forclosure from EFI or one of the others, can the investors get some money and can they come to me for more?
    By: Anonymous on 4/2/08
    Whats new with estate Financial? Nothing!!! as long as new suckers come in for the fat yield, they can play the game.
    BTW. if the land was foreclosed on, investors have the right to the money even if its less than what the original amount was.
    Maybe a quick court order is in place. Watch for new developments
    By: Anonymous on 4/2/08
    how do you stop them

    Very good question. That property was purchased by Karen Guth aka Viana Development on 4-27-07 for $1,200,000. On the same day Estate Financial lent $1,380,000 on the project. That's $180,000 more than the purchase price. Once again more than likely her up front fees. That is also more than 100% LTV and definetly not the 65.71% LTV advertised. The property does not have the entitlements yet as the information in the MLS states "contact city of Morro Bay for possible uses. Info not verified."
    By: Anonymous on 4/2/08
    Is EFI required to contact the investors priot to completing a short sale?

    How do we know they won't keep the money?
    By: Anonymous on 4/2/08
    From EFI web-site. They are still borrowing money for their own projects. They have balls don't they?

    Land Purchase
    Morro Bay, CA — This loan is to purchase and develop 3 lots in Morro Bay. Lots are contingious and will be developed either as a hotel or a commercial/residential mixed use. Zoning permits 3-story structure. Viana Development, LLC is a related entity to EFI.

    Term: 24 months • Yield: 12% • LTV: 65.71%
    Loan Number: B122-07
    By: Anonymous on 4/1/08
    A short sale is when a lending institution will look at accepting an offer on a property for less than what is owed on it. I would think that the investors would have to be the ones that would decide on this and not EF. Mechanic liens would more than likely be eliminated. Any 2nd loan would be eliminated although past taxes would be due prior to COE by the new buyer. The person who has received the money from the EF loan would also be penalized for taxes for the difference between the amount borrowed and the sales price. There may be a law in the works that might eliminate this "gain tax."
    Once again I would suggest that the investors foreclose on their properties and get their investments into their names and protect your investment. Remember there is a property in Atascadero that EF foreclosed on that went into Karen Guth's name and then she borrowed on it from Heritage Oaks Bank. Some investors had to have money in that project since EF financed the project and not Karen Guth although it ended up in her name. Something stinks here.

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  8. ccn_debate says:

    By: Anonymous on 4/1/08
    It must have a title insurance against all liens.
    Yes, the investor must get all the money from the short sale. If it is less t the original investment, there can beo more claim for additional funds if the loan was specifically against one property.
    By: Anonymous on 4/1/08
    Does anyone know if a property funded by EFI is purchased through a short sale, is the buyer liable for anything after receiving clear title?

    Do the investors/victims get that money?
    By: Anonymous on 4/1/08
    Further comments; According to Karen Guth, EFI's current problem is the result of "SubprimeMortgage" melt down and current realestate market condition. She needs to gob ack to school to take some basic courses in economics. Her resume indicates criminal justice degree, she may need it more than ever. What happened to many of the projects that were financed in 2004? The market was climbing fast, even in 2006 it was high. Why were those prjects not completed? Because lack of funding! She got involved in many partnerships that went sour, such as the Vinery on Rt 46. All that money that was funded with nothing to show. She had to approve expenses and can't even blame the contractor because she drove by the project almost daily to and from work. Investors money is gone. That site is worth no more than $1,200,000 while on her books it is likely over $5,000,000. Thats a lot bacaru for a driveway and gate posts!!
    Need answers for the trail of money. What other similar projects are out there?
    By: Anonymous on 4/1/08
    A few clarification regarding construction loans.
    Normally, a construction loan can not be more than 75% LTV which includes land draw if any. EFI's circular clearly states and shows what is the LTV after loan is fully funded. I don't know how 100% loans come in unless appraisals are fabricated. It is EFI's best interst to make a higher loans since it nables higher fees upfront on the entire loan regardless when the (if as the information shows)loan is funded 100%.
    Once many of the internal documents and the cash trail is exposed, EFI will have a lot of explaining to do. That day is coming faster than EFI wishes.
    One more issue; EFI's mngt. fees and the way it is charged to the fund. It appears that EFI takes its mngt. fees and interest spreads from the fund regardless, even if there was no return of loan proceeds from completed projects. There is no way they could take the money from sale proceeds if projects were incomplete and still sitting. So, the only way to pay interest and mngt. fee overhead/expenses to investors and themselves when newmoney came in from existing or new investors. That is a serious SEC violation. Should EFI kept each loan segrigated as they are required, some projects would have folded two years ago or ealier and they would have been disposed of at a higher price than can be expected today or later. However, that scenerio would have exposed EFI to some harsh reality with investors demanding explenation years back. Today, Karen Guth still values the fund at 95% to 100% as if nothing happened. That allowes her to collet mgnt. fee on the full amount, depriving investors their potential recovery, while hiding her delusional head in the sand. Any one still beleiving to get 100% of their money back are just as mistaken. It is the reality while she still collects her monthly fees. At this time we have no real picture of the operation, but soon light will shine through. Anyone sign on with any new LLC will be liable for further damages. Do not sign anything, just demand answers with documenst.

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  9. ccn_debate says:

    By: Anonymous on 4/1/08
    I am going to take and organize a collection of pictures of EF building sites and projects in thier current condition. Anyone with an address of one of thier projects please e-mail me. These picture and addresses wil be available to all investors.
    By: Anonymous on 4/1/08
    Carol B and Ron,
    I will have to respectfully disagree with Ron. If you designated your money towards contstruction the money should go towards construction which would include plans, permits and land improvements. If the loan is for land purchase your loan would be for the LTV of the appraised value of the complete project which would include both land and construction. Most of the loans that I have researched are recorded as CONSTRUCTION.
    Although it does appear that most of these loans were made for 100% or more for the purchase of the land and the improvements. This is why most of you are in trouble because whoever received the money didn't have any and therefore there is no equity in the project. This is why they have your money and you don't.
    By: Anonymous on 3/31/08
    All parties need to coalesce together. I heard there may be another meeting, who is doing that and when? How will people be notified?
    Ron Cooper and others have given their phone and/or email address for those wishing to get serious-have all done so? Is there any internet person in this group that could set up a website for all to connect on? Would the 'victims' be willing to kick in ten bucks or so each to support a defense committee? Many have lost hundreds of k, why not spend a bit more to get some justice?
    All should contact the DRE, Dept of Corporations and the SLO DA and demand action on this.
    By: Anonymous on 3/31/08
    Ladies and Gentlemen:
    Information, information, information. But what are we accomplishing except giving Guth/Yaguda more time to liquidate and do who knows what with our money.
    Anybody have any good ideas about how we can stop that from continuing to happening? Personally I'm broke because of EFI. They should not be able to continue to live in the lap of luxury on our money. And believe me they are doing just that.
    H E L P!!!!!!!!!!!!!!!!!
    By: Anonymous on 3/31/08
    Carol B:

    No it is not illegal.
    By: Anonymous on 3/31/08
    Carol B

    Look at your paperwork and see if the loan is listed as a construction loan. If you have an APN or address I can check for you. If it's a construction loan only then there should be a cost breakdown form showing the actual estimated cost of construction. For example if the cost breakdown indicates a total cost of building to be $400k and your loan is represented as an 80% loan to value then the loan should have been for $320k that went towards the construction within the project only. If there was an appraisal for the property it should also indicate both land value and improvement (construction) values.
    By: Anonymous on 3/31/08
    I am a part of the Mortgage Pool and need to be kept informed on this mess. If I can be of help please respond.
    By: Anonymous on 3/31/08
    Does anyone know if it is illegal to purchase property with the construction loan?

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