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…
Wong was an investor in San Francisco real estate. He frequently worked with Chan, a contractor, who would repair & renovate properties for Wong, and they would share in the profit on resale. For this particular property, Chan was to get 20% of the profit. Wong died shortly after the…
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…
The US Administration is trying to push through a deal requiring mortgage lenders to provide loan modifications that reduce the principal balance of residential loans. As reported in the Wall Street Journal Lenders have been reluctant to do so from fear that it would encourage borrowers to stop paying their…
A California commercial lease had an early termination provision. One requirement to exercise was to pay $136,000 on the date of termination. The tenant terminated, and made this payment partly by check, and applied the security deposit for the balance. The landlord kept the check, but claimed the lease was…
In a recent California HESCA decision, a homeowner in Hillsborough was in trouble on their $1.3 million dollar home. On the day of the trustee’s sale, Monopoly Game LLC, owned by Gladney, made a deal to buy the owners equity for $100,000, plus another $50,000 if they moved out within…
A Preliminary Title Report (“Prelim”), issued by a title company before issuing title insurance, has long been held by the courts as only an offer to provide insurance. The Prelim is not a contract itself, nor is it something which can be relied on. The Buyers were purchasing property in…