It is widely understood that in California, when it comes to owner-occupied homes, if the seller carries back a loan, taking a deed of trust to secure the purchase price, if the buyer defaults on the loan the seller may not obtain a deficiency judgment. The seller is limited to…
Federal law enacted in 2009 requires, after foreclosure of a federally related loan on residential property occupied by a tenant, that the acquirer serve a ninety (90) day notice to terminate the tenancy. Three day, 30 day, and 60 day notices are not enough. This is an important consideration to…
The Fair Debt Collection Practices Act (FDCPA) was enacted by Congress with the intent to police the coercive, unrestrained activities of third party debt collectors as distinct from debt servicers. It provides a number of claims and remedies for California debtors. I recently wrote about the decision in which a…
California quiet title actions may arise from many different situations which will bear on whether they will be decided by a judge or a jury. The difference is whether it is an action ‘at law,’ or ‘in equity‘. Originally in English common law, the courts decided questions of law, while…
Loan modifications for California homeowners has become less a rarity in recent times. A loan modification is an enforceable contract between the borrower and lender, and as long as the borrower performs, they will be able to keep the property. However, now as before, lenders lose track of the status…
A real estate seller in California has both a common law (established by court decisions) and statutory (created by the Legislature) duty to disclose material facts that affect the value of the property. (Brokers also have a duty of disclosure) Under the common law, a claim of fraud based on…
Promissory estoppel is a legal argument and cause of action raised when one party makes a promise for which they do not receive any compensation, which the other party relies on in changing their position, such as a promise to modify a mortgage loan. If the promissor had received some…
A cross-collateralized loan is one in which a cross-collateral deed of trust which secures more than one note. The deed of trust is recorded only against property A, but may also secure notes that are otherwise secured by other properties. If the note originally secured by property C goes into…
California deeds of trust, which secure debt on real property, involves three parties. First, is the Trustor, who borrowed the money. Second is the Beneficiary, who lent the money. Third is the Trustee, whom sort of holds title to the property for the benefit of the beneficiary, and has the…
California usury laws restrict charging of interest greater than that allowed under the law. The legislature sees fit to determine what the maximum amount of interest that may be charged for a loan. There are a number of exceptions and considerations to the law. One important exception, provided in the…