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The Fuller Loans
In October of 1990 Edwin Fuller executed a promissory note
payable to petitioner for $30,000 secured by a first deed of
trust on unimproved property located in the State of Maryland.
In 1991, Mr. Fuller agreed to sell the property to Michael Mason
subject to the deed of trust. In September of 1991, Mr. Mason
executed a promissory note for $68,000 payable to petitioner
secured by a first deed of trust. The $68,000 face amount of the
note was to retire the Fuller note for $30,000 with the remaining
$38,000 intended to fund a construction loan the proceeds of
which were to be released in stages. At settlement Mr. Mason
received a construction draw of $6,000.
On March 2, 1993, petitioner foreclosed on the property.
Because Mr. Mason had failed to pay the required property taxes,
petitioner paid property taxes of $7,147 before receiving title
to the property. Petitioner, having received title to the
property, sold it in 1999.
The International Loan Network Loans
In November of 1991 petitioner purchased at a discount from
Merwin Coad two promissory notes each secured by a second deed of
trust on respective properties located in Washington, D.C. Each
note was in the amount of $10,500 for which he paid $8,500. In
1991 the maker of the notes, International Loan Network, filed
for bankruptcy. The trustee in bankruptcy subsequently
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