Saturday, November 13, 2010 - Page updated at 08:40 p.m.

How a hard-money lender took a man's home

Jefferson Marsh, a jobless mechanic, is one of several borrowers who took hard-money loans from Emiel Kandi and paid the price.

15719 118th Avenue Court E., Puyallup

Valued at $170,000
Owned by Marsh for 10 years with no mortgage

Marsh is behind on property taxes and owes $13,400.
Nov. 19: Kandi loans him $17,000 through 619 South Howard LLC, a company under his mother's name, Juanita Kandi.
Emiel Kandi meets Marsh at The Keg and has him sign a promissory note that shows a loan for $170,000 with 18.99 percent interest, compounded daily, to be paid back in 11 months.

Kandi charges $7,000 in fees and interest. The true rate of the loan -- 45 percent -- was undisclosed.
Marsh signs a quitclaim deed that says if he misses a payment, Kandi can take the property immediately.

This allows Kandi to bypass the foreclosure process, which takes months and offers consumer protections.
Kandi then hands Marsh $3,600 cash. He pays Marsh's property taxes of $13,400.

Marsh has made four cash payments to Kandi in person for a total of $4,400.
Mid-April: According to Marsh, he can't reach Kandi to make a payment. Kandi later denies avoiding him.
April 25: Kandi files the quitclaim deed and 619 South Howard LLC owns Marsh's home.
May 1: Kandi transfers the title to 15719 Puyallup LLC, another of his mother's companies.

Kandi uses LLCs to avoid having property in his own name.
Courtesy of Martin Burns

Later in July: Marsh is kicked out of the home and his belongings thrown outside.
May 1: Kandi transfers the title to 15719 Puyallup LLC, another of his mother's companies.