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Man sued for unpaid loan
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Posted on Jul 08 2005
A company yesterday sued a Tinian resident over an unsettled disaster loan obtained by his wife who died sometime in 1997.
LPP Mortgage Ltd. filed with the Superior Court a complaint against Jose P. Cruz, whose wife Teresita acquired a $14,200 loan from the U.S. Small Business Administration in 1995.
In 2001, the SBA assigned its rights to LPP Mortgage to collect on the loan payments.
In a complaint, LPP Mortgage attorney Bruce Mailman said Teresita Cruz had executed a promissory note to pay the loan. To secure the note, she and her husband mortgaged a 977 square meter land on Tinian.
Mailman said Teresita Cruz failed to pay on the note. LPP sent a notice of default to Jose P. Cruz on Sept. 23, 2004. Despite this, Mailman said the defendant still failed to settle the loan.
Mailman said some $9,719.77 in loan principal remains unpaid. Interests have accrued to over $2,436.95.
Mailman asked the court to compel Jose P. Cruz to pay LPP Mortgage the remaining balance on the loan.
The lawyer also asked the court to foreclose the mortgage and auction the property if the defendant would fail to pay, so that the proceeds could be used to satisfy a judgment favorable to LPP Mortgage.
