Summary
Savvy hard money lenders are valuable service providers, solving complex problems in the real estate industry
An ex-boyfriend, in a shocking act of betrayal of trust and common sense, attempted to use the disguise of a formal foreclosure to orchestrate the theft of his ex-girlfriend's property...
The property was a single-family on two lots...
The then-cozy boyfriend convinced his girlfriend to convey the property title to a limited liability company (LLC), of which he was the sole manager and member...
At the time, there was mutual trust, driven by a business objective of generating profits, until it ultimately broke down...
He used her properties to enrich himself at her detriment.
Article:
The controversy revolved around a home and two adjacent lots. The lady, trusting her then-boyfriend, agreed to transfer the title to a dedicated limited liability company (LLC) for development purposes. Let's call it ABC LLC. He then moved the title into a corporation; let's call it DEF Corp. As president of the Corporation, he obtained financing using the properties as collateral for the lots and withdrew cash from the properties. He used the funds for personal expenses, disregarded legal formalities, and represented himself as personally liable for the debts.
This sequence of events raised significant legal issues, particularly regarding the misuse of property for personal gain and the breach of fiduciary duty between the general partner and the limited partner of the LLC. A breach of fiduciary duty is a legal obligation to act in the best interest of another party, in this case, the ex-girlfriend.
The girlfriend, always in the dark about what had occurred, was left to grapple with the emotional turmoil of betrayal and loss. She felt a deep sense of betrayal and loss, as her trust and her life's investment dreams were shattered.
Due to a lack of timely payments, the lender started foreclosing on the lots, meaning the girlfriend who originally owned the property would lose all her equity and her life's investment dreams.
That's when the situation took a turn:
In a display of remarkable resilience, the lady stood her ground instead of succumbing to the underhanded acts of her then-ex-boyfriend. She was irate that her boyfriend had deceived her by transferring his property to the new corporation. She filed suit against him and obtained an injunction against the foreclosing lender, refusing to be a victim of his deceit. Her courage in the face of such betrayal is genuinely inspiring.
There are many terms to define her ex-boyfriend: scoundrel, fraudster, scallawag, sociopath, narcissist, and unconscionable prevaricator (liar). These are individuals who operate daily for their gain using deceptive tactics, as was the case here.
Lawyers representing the ex-girlfriend were able to negotiate a settlement, which included regaining possession of the title and refinancing to pay off the loan to the lenders. The court system acted as a backstop to neutralize the evil actions of the ex.
However, the situation took a turn when a private moneylender stepped in to help. This lender made a loan encumbering the home as a second lien and cross-collateralizing both lots as a first lien, providing the necessary financial support to the ex-girlfriend.
In the end, the courts made the scoundrel transfer the property back to the lady, and the defaulted loan on the two lots was paid off, marking a significant victory for the lady and a precise instance of justice being served. This victory is a testament to the power of the legal system in righting wrongs, and it should bring a sense of justice to all who hear this story.
Emotional involvement can be devastating when the loving and adoring party realizes that her knight in Shining Armor is indeed a sociopath. According to the American Psychological Association, between 3% and 5% of the male population possesses antisocial personality disorder (ASPD). In my opinion, it is closer to 5%. There are about 100 million American males older than 18, so the number of 5% would be five million sociopaths. That is enough to fill sports complex stadiums that hold 65,000, 77 times.
There are 170 million women over the age of 18 in the United States. The exact percentages of sociopaths apply to women as to men. Therefore, we will need approximately 154 football or baseball stadiums to accommodate this subgroup of the population. Five million males and 5 million females classified as sociopaths equals 10,000,000 people. A few states, ranging from 10 to 13 million, are Michigan, South Carolina, Georgia, Ohio, Illinois, and Pennsylvania.
In this case, the emotional betrayal was as significant as the property theft, if not more. The ex-girlfriend was left to grapple with the emotional turmoil of betrayal and loss, a testament to the profound emotional impact of such legal battles and the transformative power of such experiences. Her transformation is a powerful reminder of the personal toll of such legal disputes.