All Forum Posts by: Hanna Zhang

In February, I took out a hard money loan from Easy Street Capital. In April, I was ready to pay it off—only to find out they had transferred the loan to Fay Servicing LLC without notifying me. That's when the nightmare began.

First, Fay’s payoff statement overcharged me by $60,000. After days of back-and-forth, I finally received a corrected payoff letter on April 24 and wired the full amount on April 30.

Now it’s been 23 days since I paid off the loan, and the lien still hasn’t been released.

To make it worse, in May, Fay withdrew two additional payments from my account after the payoff. They never reply to emails, and when I call, I get nothing but vague excuses. No one will give me a timeline for when my loan will be closed.

Meanwhile, my property is in escrow, and the buyer is scheduled to close on June 10. The title still shows an open lien. Easy Street Capital? Completely silent. They sold the loan and walked away.

I’ve officially filed complaints against both companies with the CFPB, DFPI, and SML, and I plan to keep escalating daily until this is resolved.

Please, avoid these two companies. And if you’ve ever dealt with something like this, I’d really appreciate any advice on how you got it resolved.

This is a fay servicing issue not an easy street issue. Also since its a hard money loan the CFPB, DFPI and SML really have no jurisdiction as this is not a consumer loan.

Regarding the lien release, typically that takes up to 30 days and will not be an issue if you are using a title company to close this on the 10th as they will confirm payoff is zero and will still close the deal.

I am not defending any companies, but I would not waste time chasing or filing complaints as unfortunately you will get no where.

Regarding the servicer - again borrower has no control over who that is as its lender selected.

Sorry you had to go through this.

Thank you for your message. I understand your point, but I’d like to clarify my situation and perspective.

First, regarding the lien release — I’ve confirmed directly with the title company that they will not proceed with releasing funds or closing the deal unless they receive an official zero balance demand and the lien is properly reconveyed. So unfortunately, the delay is already affecting the transaction, and “waiting 30 days” is not acceptable from their standpoint.

Second, while I understand that Fay Servicing is now the servicer, Easy Street Capital was the original lender, and as such, they bear responsibility for transferring the loan to a servicer like Fay that is now in violation. Previously, my loan was serviced by BSI Financial, and there were no such issues — which shows the choice of servicer does matter.

Even if this is a hard money loan, California Civil Code Section 2941(c) still requires lien releases within 21 days of full payoff, and this timeline has already been exceeded. I’ve researched this carefully and I believe both Fay Servicing and Easy Street Capital have legal obligations under California law.

Therefore:
-I willfile a complaint with the CFPB, DFPI, and SML, even if enforcement is limited — because this helps create a record.
-I will also report both companies to the Better Business Bureau (BBB).
-Most importantly, I will be pursuing this inCalifornia Small Claims Court, because the delay has already jeopardized my property sale.
I will no longer do business with Easy Street Capital and will advise others to be extremely cautious based on my experience.

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I’m a house flipper and want to share a serious issue I’m dealing with that’s put my entire deal at risk.