The last period of high inflation in California mortgage loan rates this author saw the use of all-inclusive deeds of trust (a.k.a. wraparound deed of trust) to allow borrowers to acquire property when it was difficult to qualify for a high interest rate loan for the entire purchase price. Given…
Receivers have recently been in the Sacramento news concerning the status of the Senator Hotel, a situation where the loan was in default and the lender had a receiver appointed.. With distressed properties at record levels, an increasing number of Lenders are turning to receivership to help salvage troubled properties.…
The average length of unemployment is now nine months, according to the Treasury Department, but Federal foreclosure help for the unemployed only lasts for three months. The Treasury Department was given $46 billion to spend on keeping homeowners in their houses; to date, the agency. Big Deal. Meanwhile, the Keep…
The California legislature last year passed senate bill 931, which became Code of Civil Procedure section 580e, effective January 2011. It provides that when a residential lender in the first position (i.e., the deed of trust recorded first in time) approves in writing a short sale, the lender cannot later…
A recent California bankruptcy court decision ( In re: Eleazar Salazar) found a foreclosure invalid because of failure to record an assignment of the Deed of Trust. In the original Deed of trust (DOT) Accredited was the lender, Chicago Title was the trustee, and MERS was the nominal beneficiary. The…
In a recent court decision homeowners in Los Angeles were foreclosed. The foreclosing lender then filed an eviction action (unlawful detainer); the former owners stipulated the eviction judgment. The Homeowners filed suit for wrongful foreclosure. The claim was that a Notice of Default was recorded on behalf of ‘Option One’…
Stated Income Loans allowed borrowers to merely state their income, without a thorough investigation by the lender. They allowed borrowers to lie about their incomes, so they became known as liar loans. The loose underwriting, where the lenders really did not care what the truth was, were a badge of…
A California business borrower went into default on their loan. They worked out a loan modification with the Lender; According to the Borrower, the Lender told the Borrower that the agreement would be to forebear collection for two years and would include as additional security only two orchards, and not…
Reverse Mortgages, or Home Equity Conversion Mortgages, Are now subject to a policy in which, if the surviving spouse is not on the loan and title documents, they are required to pay off the full balance of loan in order to stay in the house. Otherwise, they face foreclosure. Reverse…
The Mortgage Electronic Registration System (MERS) is a private corporation that tracks the ownership interests and servicing rights in mortgage loans. The system was developed so that holders of loans did not have to record assignments every time they were transferred. It saved the industry money and created an impenetrable…