A $1.4 million private loan, a foreclosure sale over missed installment payments, and a lawsuit in between.

A borrower with a four-unit Beverly Hills property claims his broker secretly owned his lender. That is not the claim that should worry lenders.

This week's case: a $1,400,000 private loan in default, a canceled trustee's sale, and a borrower suing the private lender for fraud, missing foreclosure notices, and unlicensed lending.

---

Abrahami v. Lenders Law Group, LLC, et al.

Court: Los Angeles County Superior Court

Filed: May 28, 2026, thirteen days before the June 10 sale date the complaint references. The borrower is represented by counsel.

Causes of Action: fraud, foreclosure-notice violations, negligence, unlicensed lending, unregistered foreign companies, unfair business practices, and breach of contract.

In December 2024, the borrower took a $1,400,000 private loan secured by a Beverly Hills property that county assessor records list as four residential units. Per the recorded Deed of Trust, the loan is a second deed of trust, behind a first recorded in 2006, with a twelve-month term and a maturity date of December 15, 2025.

The borrower alleges the broker who arranged the loan presented it as a good find, and later admitted that the broker and the broker’s husband own the lender. The borrower alleges the broker directed that loan payments be sent to the broker’s husband by Zelle, and that a $4,000 payment sent by Zelle to the broker’s husband was never credited to the loan. The borrower also alleges the lender held back $23,000 in escrow without authorization in the loan contract. The loan contract is not attached to the complaint.

On November 4, 2025, the foreclosure trustee recorded a Notice of Default. Per the recorded notice, the loan went into default on the March 1, 2025 installment, and $225,430.25 was required to bring the account current as of October 29, 2025.

On February 6, 2026, the foreclosure trustee recorded a Notice of Trustee’s Sale setting a March 6, 2026 auction, with a total estimated balance of $1,783,411.29.

The borrower alleges a replacement loan was lined up to pay everything off, and that the payoff demand sent to the new lender was $1.9 million on the $1.4 million note. The complaint asks the court to stop the trustee’s sale and for damages and civil penalties.

The complaint’s claims, and what each one hinges on:

• Fraud: the allegation that the broker concealed owning the lender.

• Foreclosure-notice violations: the borrower alleges no one contacted him about his financial situation before the Notice of Default was recorded, and no one offered foreclosure alternatives after it (the § 2924.9 claim).

• Negligence, unlicensed lending, and unregistered companies: the allegation that the lender and its affiliates are out-of-state companies that never registered in California and hold no California lending license.

• Unfair business practices: the same allegations, repackaged.

• Breach of contract: the $4,000 payment the borrower says was never credited, and the $23,000 the borrower says was held back in escrow without authorization.

Per the foreclosure trustee’s published sale status, the July 27, 2026 sale has been canceled.

One of these claims will decide the case. It is not the fraud claim.

🔒 Paid below: the takeaway and three lessons for lenders.