Garrard

I. FACTUAL AND PROCEDURAL BACKGROUND

Carol is the administrator of the Estate of Alice Richardson, her mother. Carol and Kenneth were heirs of the estate and title holders of real property located at 1710 Laguna Street in Seaside, California (the Laguna property). In October 2006, Carol entered into a loan for $265,000 for improvements to the Laguna property, which at the time was an asset of her mother’s estate. The parties who arranged and brokered the loan were not licensed in California. The Investors provided the funds for the loan, resulting in each obtaining a security interest in the Laguna property. The promissory note bore an interest rate of 12.5% basic interest plus a penalty of 17.5% in the event of default. The note was secured with a deed of trust, which was recorded against the Laguna property on October 30, 2006. Carol’s siblings, including appellant/intervener Richardson, inherited from Alice Richardson’s estate an interest in a $180,000 promissory note secured by a second deed of trust against the Laguna property. The siblings’ deed of trust was recorded on June 11, 2007. A. 2007 Foreclosure and 2008 Lawsuit In or around 2007, the Investors initiated a…