Our Negotiation Techniques Resolve Lien Priority Dispute Before Complaint Served
We recently settled a lien priority dispute that resulted in the recovery of several hundred thousand dollars for our client, consisting of 100% of all principal, interest and attorneys’ fees due her.
The dispute involved competing real estate lenders whose loans were secured by deeds of trust on the same real property. Our client held a first deed of trust on the property. The lender that was challenging our client’s lien priority held a junior deed of trust by virtue of its later recorded deed of trust, but argued that our client had subordinated her position either expressly or through the doctrine of equitable subordination. The lender challenging our client commenced litigation to obtain an injunction of our client’s scheduled foreclosure sale and to determine the priority of the deeds of trust. However, we convinced the plaintiffs that their position was meritless, resulting in a voluntary pay off of all principal, interest and attorneys’ fees before the complaint was even served on our client.
Needless to say our client was extremely pleased with the result, and sent us what may just be the nicest bouquet of flowers we have ever received as a gesture of her appreciation!
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