DRE RECOVERY ACCOUNT IN CALIFORNIA – INTENTIONAL FRAUD OF BROKER.
We recently obtained a judgment against a few California brokers and real estate licensees. They failed to respond to a lawsuit we filed for predatory lending in regard to a toxic option arm loan we argued the broker “steered” my client into. The judgment was in excess of $500,000 against each of three different entities. This came following a “prove-up” hearing where we were required to prove our case. After overcoming what the judge stated was a “predatory borrower” we showed a amount of evidence that the court then characterized as “clear and convincing” and he gave us the judgment we sought in our complaint.
Thereafter, I informed my client that we now need to go after and try to enforce the judgment. We also took the opportunity to discuss the California DRE recovery account. This is an account paid into by real estate licensees in California and which is there to help victims of fraud relating to acts requiring a real estate license. If you have a judgment for fraud, and if you cannot collect on your judgment after reasonable efforts, you may apply to the recovery account (within one year) and see if the DRE will pay you out.
Click on this link for more information about the DRE recovery account, time frames, requirements, and maximum amounts you may seek. If you have exhausted efforts to collect on your real estate fraud judgment against a licensed DRE broker or salesperson, and want to try to tap into the DRE recovery account, give us a call at (877) 276-5084. Depending on the circumstance, we may be able to handle your recovery account matter on a contingency fee basis.
