California lawsuits to set aside a trustee’s sale are generally suits in equity, and a borrower who seeks equity must do equity. One requirement of equity in this situation is that the borrower must pay, or offer to pay, all the secured debt or at least all of the delinquencies…
I have discussed the California Civil Code section 2923.5 requirement in a prior blog about an effort to stop a foreclosure. It requires that, prior to issuing a notice of default, the mortgage lender must contact the borrower by phone or in person to assess their financial condition, and explore…
Often in California real estate nonjudicial foreclosures (trustee sales), it is not the first lender that is foreclosing, but the second deed of trust. Concerning priorities: the “first” is the first deed of trust to be recorded, and is usually the purchase money loan, or a refinance. The first is…
A California woman got behind on her mortgage, and the Lender recorded a Notice of Default, so the borrower filed a ch 7 bankruptcy. She intended to convert to a Ch. 13 to pay the arrears and save her house. U.S. Bank, trustee for the lender, told her that, once…
An a foreclosure sale investor had an oral arrangement with an agent at a California title company. He would ask the agent if the loan being foreclosed was the senior loan; he only wanted a yes or no answer. He asked about an Encino property, was told ‘yes’, and so…
Lenders on California properties are averaging 367 days from the first late payment and a foreclosure referral, as reported by The Big Picture. This is the time before the notice of default is recorded. The standard used to be three months of late payments before the lender referred the loan…
Depositions in Bankruptcy cases are providing bits and pieces of how the mortgage industry worked the last few years. In addition to learning about the robosigners who were “vice presidents” of MERS, this recent revelation, noted by Mike Konczal, reveals a fundamental flaw that may exist in many Countrywide sourced-…
California Civil Code section 2923.5 requires that, prior to recording a Notice of Default (the first step in a non-judicial foreclosure), the lender must contact the borrower to assess their financial situation and explore options to prevent foreclosure. An Orange County homeowner filed suit against the lender for recording a…
A lender was foreclosing on a house in Southern California, and the owner was arranging financing to avoid foreclosure. They were down to the wire, and the owner’s broker was in contact with the foreclosure officer. The foreclosure sale had been postponed to August 30, but they needed more time.…
While tax consequences may be the last thing on the mind of homeowners facing a real estate foreclosure, they play a role in the bigger picture and should be part of the decision process. What follows is a simple discussion of three aspects of personal income tax factors that should…