Imagine the stress of not getting paid on a $780,000 loan. Failure to pay back a loan of this size could bankrupt any small investment company. This is exactly what happened to Davis|Stibor’s client. Davis|Stibor was retained to represent a New Jersey based investment company to recover on a loan it provided to purchase an apartment complex in Henderson, Nevada. After the borrower defaulted, and refused to negotiate a settlement, Davis|Stibor filed a complaint asserting claims for breach of contract, and seeking to foreclose on its client’s second deed of trust that secured the loan. The borrower filed a counterclaim against Davis|Stibor’s client seeking to void the second deed of trust alleging that the loan violated Nevada Revised Statute Chapters 645B and 645E, which require residential lenders to be licensed mortgage brokers and/or bankers.
Davis|Stibor filed a motion to dismiss the borrower’s counterclaim arguing that because its client was a foreign limited liability company, it was exempt from the requirements of NRS 645B and 645E. After receiving the motion to dismiss, the borrower agreed with all of the arguments and voluntarily dismissed its counterclaim. After five months of intense negotiations, which involved commercial brokers, and third-party purchasers, Davis|Stibor was able to secure $850,000 for its client, which paid the principle of the amount owed on the loan plus interest.
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