In a legal battle that underscores the complexities of financial agreements and real estate investments, Residential Investment Trust IV has filed a lawsuit against Chetan Patil in the Superior Court of California, County of Santa Clara, on April 8, 2025. The case revolves around allegations of breach of a written guaranty tied to a significant loan default.
The plaintiff, Residential Investment Trust IV, is a Delaware Statutory Trust authorized to conduct business in California. The complaint targets Chetan Patil, an individual residing in Santa Clara County, alongside unnamed defendants referred to as DOES 1 through 20. According to the filing, Anchor Loans, LP initially provided a loan amounting to $3,233,402.00 to Blue Valley Ventures, LLC on July 13, 2022. This loan was secured by a Note and Deed of Trust recorded in San Francisco County and was guaranteed by Chetan Patil for the benefit of Anchor Loans and its successors.
Residential Investment Trust IV claims that it holds a complete interest in the Deed of Trust and Note following an assignment from Anchor Loans. The crux of the issue lies in Blue Valley Ventures' default under the Loan Documents as of December 10, 2024. Despite foreclosure proceedings resulting in the sale of the property at $795,000.01 on December 10, 2024, there remains an outstanding balance under the Note amounting to $1,897,902.93 as of March 11, 2024.
The complaint accuses Chetan Patil of failing to fulfill his obligations under the Guaranty despite demands for payment. The Guaranty Default has led Residential Investment Trust IV to seek damages totaling $1,897,902.93 plus accruing interest from December 10, 2024 at a rate specified in the Note and Guaranty—14.50% per annum—alongside attorneys’ fees and other recoverable expenses.
Residential Investment Trust IV's legal representation is seeking judgment for these amounts due under the breach of written guaranty claim against Chetan Patil and DOES 1-20. They are also requesting additional interest from December 10th onward and coverage for all legal costs incurred during this process.
The case is being handled by attorneys Glenn C. Kelble and Luis F. Chaves from Sweeney & Kelble APC law firm based in Los Angeles. The presiding judge over this matter is not named within this document but can be identified through Case No.: 70462944 filed with Clerk Kelly A. Sweeney.