A notice of default had been recorded against plaintiffs’ residential property, and a notice of trustee sale was also recorded. Plaintiffs retained a lawyer to negotiate a loan modification with the lender. In their complaint for promissory estoppel, plaintiffs allege the lender agreed to continue the scheduled trustee sale and negotiate a loan modification. Discussions […]
The Foreclosure Run-Around.
The first paragraph of the appellate opinion best describes why the appellate court reversed the grant of defendant bank’s demurrer and remanded the matter to the trial court for further proceedings: “This appeal represents another example of what is becoming a well-established and predictable pattern. A homeowner in distress because of the meltdown of the […]
Mechanic’s Lien Eliminated After Deed In Lieu Of Foreclosure.
Property was subject to a first deed of trust and a mechanic’s lien. The property owner defaulted on the loan secured by the trust deed. Faced with foreclosure on that senior debt, the property owner gave the trust deed beneficiary title to the property by means of a grant deed in lieu of foreclosure. The […]
Can’t Blame Loss Of Property Value After Foreclosure On Appraisal Done Seven (7) Years Earlier.
After his home was placed in foreclosure in 2011, plaintiff brought an action to try to halt foreclosure proceedings. In it, he contended defendant made fraudulent misrepresentations or omissions by stating the appraised fair market value of the home in 2004 was increasing and that the appraisal was outrageously speculative. The trial court sustained defendant’s […]
Forbearance Fees Do Not Violate Usury Law.
A debtor entered into a series of agreements in which he sought to delay enforcement of judgments. The creditor agreed not to enforce the judgments prior to a certain date in exchange for certain promises as well as the payment of a surcharge of $500 per day for each day the judgments were not paid […]
Foreclosure In The United States Marine Corps.
Plaintiff, in the United States Marine Corps, took out a mortgage in 2007. Between 2008 and 2011, he was called up to active duty overseas three times, and failed to make all of his mortgage payments. The loan servicer began foreclosure proceedings in 2009; it rescinded the notice of default in 2010, but not the associated […]
Lease Survives Foreclosure.
Plaintiffs had rented space in a converted garage unit for several years when the residential property was foreclosed upon by a bank. The trial court granted the bank’s motion for summary judgment based on its determination the foreclosure sale extinguished plaintiff’s lease. Citing the Protecting Tenants Against Foreclosure Act of 2009 [PTFA; Pub.L. 111-22, Div. A, […]
Is A Notice Of Sale Valid If Over A Year Old?
If the Notice of Trustee’s Sale is more than 365 days old, it is probably invalid. California Civil Code section 2924g, subdivision (c)(1) provides: ” (c) (1) There may be a postponement or postponements of the sale proceedings, including a postponement upon instruction by the beneficiary to the trustee that the sale proceedings be postponed, at any time prior to […]
MORTGAGE DEBT RELIEF ACT – SET TO EXPIRE DECEMBER 31, 2013 !
There are 30 days to go until January 1, 2014 when forgiven debt from the disposition of a principal residence – exempted from income tax since the Mortgage Debt Relief Act of 2007 went into effect, will again become taxable. This is not the first time this law has had to be revised for an extended […]
Home Was Sold While In Compliance With Mortgage Modification Plan; Demurrer Should Not Have Been Sustained.
In 2006, plaintiff refinanced her home and executed a promissory note secured by the deed of trust. The deed of trust was later assigned to defendants. A notice of default and election to sell under the deed of trust were executed and recorded. After negotiations, defendant offered plaintiff a modification plan which required her to make […]