Years ago, Heejin loaned $50,000 to a friend of a friend as a second mortgage. She recorded the mortgage but did not worry about all the regulatory particulars b/c her loan had extremely favorable terms, it saved the borrower from imminent foreclosure, and the borrower was a close friend of a close friend.

The borrower, however, later used legal loopholes to avoid repaying Heejin a penny, even though he had ample equity and he would have lost his house but for Heejin.

Our attorneys frequently remind us that “No Good Deed Goes Unpunished.” Their point is that everyone needs to follow the rules and regulations and to put everything in writing no matter how close a relationship is and no matter how big of a favor you might be doing for someone. People forget, people change, and people rationalize.

Follow up every deal discussion with an email summary of events, put every contract detail in writing, be 100% compliant, and take nothing for granted. Similarly, it is often counter-productive to bend over backwards to please the un-please-able.

Apologies if the above sounds cynical, as I am not and things are going very well. It is just an important business reminder that we all need to remember precisely b/c things are going so well.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646

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