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Suit runs after disaster loan in default
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Posted on Oct 08 2004
Another lawsuit that seeks to collect on a disaster loan that was originally obtained from the U.S. Small Business Administration reached the Superior Court yesterday.
LPP Mortgage Ltd., a Texas firm, filed a civil action against David C. and Agatha B. DeLeon Guerrero, who reportedly acquired a $52,700-loan from SBA on Nov. 19, 1997.
The DeLeon Guerreros had executed a promissory note in favor of the SBA, according to LPP’s lawyer, Bruce Mailman. The DeLeon Guerreros then modified the note, increasing the principal amount to $54,000.
Mailman said the DeLeon Guerreros mortgaged a homestead lot in Kagman III to secure the notes.
Sometime in 2001, the SBA assigned its rights and interests over various loans in favor of LPP.
Last June 24, LPP sent out a notice of default against the DeLeon Guerreros for nonpayment of their obligations pursuant to the note. Mailman said the notice was delivered to the defendants last July 22.
Mailman said the defendants owe LPP some $52,193.76 in principal and about $8,000 in interests. The DeLeon Guerreros allegedly refused to settle their obligations despite demand by LPP, prompting the company to go to court.
Mailman asked the court to compel the DeLeon Guerreros to pay LPP the unpaid principal and interests of the loan. If the defendants fail to fully settle their loan obligations within three months after a possible judgment by the court in favor of LPP, Mailman asked the court to foreclose the mortgaged land and auction it, so that proceeds could be used to satisfy the judgment. (John Ravelo)
