Plaintiffs’ complaint alleges, among other things, fraud and unfair business practices in the origination of plaintiffs’ residential mortgage loans, and negligence in the subsequent servicing of the loans, including negligent review of plaintiffs’ applications for loan modification. Plaintiffs contend the trial court erred in sustaining defendants’ demurrer when it concluded the complaint fails to allege […]
Borrower Lacks Standing To Enforce Agreement Relating To Sale Of Promissory Note On Her Home.
After defendant financial institution sold plaintiff’s promissory note, plaintiff brought an action to quiet title of her residence in herself. Defendant demurred because plaintiff failed to allege tender to cure her default on the promissory note. The trial court sustained the demurrer without leave to amend. On appeal, the appellate court considered whether plaintiff should […]
Destroy Or Remove Fixtures From Foreclosed Property And Go To Jail.
Under Penal Code section 502.5, a borrower under a loan secured by real estate may not intentionally harm the lender by removing statutorily specified improvements from the encumbered premises. Defendants, a husband and wife, were convicted of violating section 502.5 by taking fixtures from their foreclosed home. A jury found an enhancement of “great taking” […]
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 […]
Dismissal Of Predatory Lending Action Reversed.
Plaintiffs initiated an action against a loan broker and various financial institutions, claiming “pursuant to a scheme of predatory lending, [they] made material misrepresentations and fraudulent concealments of circumstances in the appraisal of the residence and in the terms of the loan in order to maximize their profit.” They alleged they applied for a residential home […]
Fifteen Percent (15 %) Interest Not Usury.
Plaintiff borrowed money from a mortgage lender secured by a deed of trust on certain real property. The interest rate was 15%, with interest-only payments from 2009 until 2012. When plaintiff defaulted, the lender foreclosed. Plaintiff filed suit against the lender claiming the interest rate on the loan exceeded the maximum allowed by the California Constitution, […]
Evidence Of Title Insurance Should Have Been Admitted.
The signatures on loan documents were forged. Interest-only payments were made. A larger replacement loan was made, again based upon forged documents. When the property owners realized what had happened, they brought an action for fraud against various persons. Everything settled, except a cross-complaint of one lender against another lender. At trial, a jury decided a […]
Dismissal Of Wrongful Foreclosure Action Reversed.
The appellate court reversed the sustaining of a demurrer to plaintiff’s complaint for wrongful foreclosure. In support of the demurrer, defendants sought judicial notice, which was granted, of the notice of default, including the attached declaration of someone named Samantha Jones, which stated the bank “tried with due diligence to contact [plaintiff] in accordance with California […]
The Holder Rule Permits Action Against A Lender To The Same Extent An Action Could Be Brought Against The Seller Of A Mobile Home.
Plaintiffs bought a motor home that was financed with an installment contract. Shortly after the sale, the contract was assigned by the dealership to a bank. Plaintiffs assert the motor home was defective from the start. After months passed without the demanded repairs being made, plaintiffs disclaimed their ownership in the vehicle and sued the dealership. […]