Federal Law

Rachel Gallegos, Has She Paid a Dime Since She Obtained Three Mortgages for Her Home?

Rachel Gallegos claims all 3 properties are financed by Velocity Mortgage, but our investigation finds that other parties are involved.



 (Court 061, JUDGE F. PHILLIPS)

OCT 31, 2021 – JUL 5, 2022 | REPUBLISHED BY LIT: OCT 31, 2022
Nov. 21, 2022

No movement since Nov. 1.

Petition and Exhibits Released… After Unwarranted Sealing

The material movement between the two court filings is this lawsuit, Pestova is purchasing the 2nd Rental home at 7802 Ford for $150k, which now means she owns both 7844 and 7802 rentals.

The ‘buyer’ for Gallegos main residence at 2210 Briarstone remains unknown, as no TREC contract is supplied.

None of This Adds Up, At All…

“LJC Financial is a hard money lender based in Houston, Texas… We are a direct hard money lender – not a broker. LJC can give you a “go/no go” decision quickly or advise you on what it will take to get your project funded.”

Pestova is purchasing rental #2 from Gallegos (7802 Ford St) for $150k on Oct. 28, 2022, funded by LJC.

LJC Financial is a hard money lender based in Houston, Texas. Founded in 2007, we have provided millions of dollars in loans to real estate investors who have improved properties, stabilized neighborhoods, created jobs, and built wealth.

We specialize in single family, multi-family 1-4 and residential rent to own projects, however, we can fund a wide range of commercial real estate investment opportunities. Whether it’s your first deal or your 50th, we provide personalized guidance and direction regarding a variety of financing options and work hard to build long lasting relationships by earning your trust.

We are a direct hard money lender – not a broker. LJC can give you a “go/no go” decision quickly or advise you on what it will take to get your project funded. Our professionals have real estate investor experience and know what it takes to be successful in today’s competitive market. We keep you moving toward closing by using common sense underwriting and making quick decisions. An experienced professional is always available throughout the entire underwriting and closing process. We are committed to your success.

When banks say no, we say yes with our straightforward and transparent lending process. Get in touch today to start making smarter financing choices.

New foreclosure wherein we’ve extracted the information from the prior suit as the HCDC docket is withheld again from being published for at least 24 hrs.

Rachel P Gallegos – BK #3


United States Bankruptcy Court, S.D. Texas

NOV 1, 2022  | REPUBLISHED BY LIT: NOV 2, 2022
Nov. 21, 2022

Nov. 16: Notice of Appearance and Request for Notice (Creditors)

The BK Property Schedule…

New Property Valuations, All 3 Properties Listed as Owned by Gallegos

Rachel Gallegos files 3rd Bankruptcy Petition Pro Se on Nov. 1, 2022.

Notably her property schedule valuation for the 3 properties is materially lower than the $1,100,000 claimed in her Oct.31 lawsuit in Harris County District Court. Here, she values the 3 properties at only worth $842,663.


Gallegos claims in her latest Harris Court filing that she repaid the $143k outstanding loan for 7802 Ford, extinguishing that debt.

That cash injection came from the sale of the rental property to Pestova on Oct. 28, 2022 for a sum of $150,000.

Meanwhile, 7802 Ford is listed in the above schedule as her property with a value of $140,000.


This property was the first rental sold to Pestova on Nov. 21, 2021.

Meanwhile, 7844 Ford is listed in the above schedule as her property with a value of $175,000.

However, to further complicate matters, there’s an alleged mortgage debt of $193,819 due to Velocity, per mortgage servicer PHH Mortgage.

We’re not sure how you can have a loan on a property you’ve sold or list it as owned property.

And on top of that, Gallegos has submitted email correspondence (as exhibits in her latest Harris Court case) seeking to settle the loan on this property, but Velocity is yet to provide a payoff amount. However, now Gallegos is under BK protection for a 3rd time, that changes matters.


Gallegos lists her main residence at a current market value of $527,663.

There’s an alleged mortgage debt of $476,583 due to Velocity, per mortgage servicer PHH Mortgage.

U.S. Bankruptcy Court
Southern District of Texas (Houston)
Bankruptcy Petition #: 22-33282

Assigned to: Bankruptcy Judge David R Jones
Chapter 13
Date filed:   11/01/2022


Rachel P Gallegos
2210 Briarstone Bluff Crossing
Houston, TX 77089
SSN / ITIN: xxx-xx-8506
represented by Rachel P Gallegos
William E. Heitkamp
Office of Chapter 13 Trustee
9821 Katy Freeway
Ste 590
Houston, TX 77024
U.S. Trustee
US Trustee
Office of the US Trustee
515 Rusk Ave
Ste 3516
Houston, TX 77002


Filing Date # Docket Text
11/01/2022 1
(9 pgs)
Chapter 13 Voluntary Petition Individual . Receipt Number O, Fee Amount $313 Filed by Rachel P Gallegos . (JacquelineMata) (Entered: 11/01/2022)
11/01/2022 2
(1 pg)
Certificate of Credit Counseling (Filed By Rachel P Gallegos ). (JacquelineMata) (Entered: 11/01/2022)
11/01/2022 4 Statement of Social Security Number Filed. Does this document change the social security number for one or more debtors? No. Has the Meeting of Creditors been set in this case? No. (JacquelineMata) (Entered: 11/01/2022)
11/01/2022 5
(10 pgs)
Schedule A/B: Property for Individual (Filed By Rachel P Gallegos ). (JacquelineMata) (Entered: 11/01/2022)
11/02/2022 6
(1 pg)
Notice and Order regarding exchanging of exhibits and witness lists in all contested matters and adversary proceedings. (Entered: 11/02/2022)



PACER Service Center
Transaction Receipt
11/02/2022 08:14:53

Rachel P Gallegos – BK #2


United States Bankruptcy Court, S.D. Texas

JAN 4, 2022 – OCT 18, 2022 | REPUBLISHED BY LIT: NOV 2, 2022

$57k a Year income for Rachel P. Gallegos

ZERO Rental Income from 2 “Surrendered” Rental Properties

(as at Jun. 14, 2022)

James Q. Pope, The Pope Law Firm



 (Court 113)

OCT 5, 2021 – JUL 5, 2022 | REPUBLISHED BY LIT: OCT 31, 2022

Notably, no Exhibits Showing Loans or Deeds or Rental Income Due are Attached to Complaint by Gallegos


Rental 1; $131, 600 mortgage

Rental 2; $ 93,100 mortgage

Sub-total; $224, 700 funds received.

Main Res “Est Market Value” (no purchase price mentioned);$550,000

However Zillow shows at same time as her purchase it was for sale at $460,000, so we’ll use this value.

Mortgage; $294,000

Down-payment required (if purchase price $460k); $166,000


Rental properties are not or are no longer owned by Gallegos.

RENTAL PROPERTY #1 SOLD TO PESTOVA 11/22/2021  – after filing suit #1 in Harris County District Court.

Velocity financed the property in 2020, at which time Gallegos owned the investment property.


However, both rentals show a mailing address which leads to an individual named ARTEM A PESTOV. And that property  1400 Hermann Drive 4A, Houston was sold by Svetlana A. Pestova to Artem Pestov in 2019. And now Pestova owns 7844 Ford. LIT notes there’s a helluva “A’s” floating around for these named individuals.

There is an obvious relationship between Gallegos and Pestov[a] based on the detailed financing, all via Velocity.



Rachel P Gallegos – BK #1


United States Bankruptcy Court, S.D. Texas

OCT 5, 2021 – DEC 23, 2021  | REPUBLISHED BY LIT: NOV 2, 2022

Wed, Nov. 2, at 0942 hrs by email to all parties emails in exhibits


We’ve spent quite some time with Ms. Gallegos’s case(s).

You can review our article and findings on LIT, here;


Can anyone help us out – as this does not add up, at all?

We’d like to clarify any misunderstandings we may have, but the public records contradict the funding of these 3 loans and the status of ownership.

Y’all have a great day.

Response from Luis Escobedo on Wed, Nov. 2 at 1032 hrs


Please note :

7802 Ford Houston, TX 77012 Was sold just few days ago and it may not show in record yet, it was just funded and paid in  full on Ocotber 31, 2022 , Mrs Gallegos was afraid that the subject property may not have closed on time and the property was about to be foreclosed .

2210 Briar Bluff Crossings Houston, TX 77089 is the homestead of Mrs Rachel Gallegos , the house is financed by Velocity mortgage, and she is in the process of selling the property.  She is disputing the pay off of this property.

7844 Ford Houston, TX 77012, Loan with Velocity is under Mrs Rachel Gallegos , she is trying to pay this loan in funds with the funds of her buyer but she is disputing the pay off.

Do not hesitate to ask any specific questions you may have about Mrs Gallegos Properties , i can help you or I can research the right answer for you . Thanks

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Rachel Gallegos, Has She Paid a Dime Since She Obtained Three Mortgages for Her Home?
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