Articles from July 2010

FORECLOSURE FORBEARANCE AGREEMENT MUST BE IN WRITING TO BE ENFORCEABLE

Sunday, July 18th, 2010

On October 9, 2008 the California Court of Appeal ruled that a lender’s oral promise not to foreclose on a homeowner was not enforceable unless it was put in writing and signed by the lender.  Secrest v. Security National Mortgage Loan Trust 167 Cal. App. 4th 544 (2008)

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BROKER HAS FIDUCIARY DUTY TO DISCLOSE TO THEIR CLIENT, MATERIAL INFORMATION KNOWN TO ANY OF THE BROKER’S AGENTS

Sunday, July 18th, 2010

The California Court of Appeal for the Second District on November 1, 2007 ruled that a real estate broker has a fiduciary duty to disclose material information to its client, regardless of which salesperson in the broker’s office has the information.  Michel v. Palo Verdes Network Group 67 Cal.Rptr. 3d 797 (2007).

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ESCROW AGENT’S DUTY TO COMPLY WITH LENDER’S INSTRUCTIONS FOR THE DISBURSEMENT OF FUNDS CONTINUES EVEN AFTER THE CLOSE OF ESCROW

Saturday, July 17th, 2010

An escrow agent’s duty to disclose the distribution of loan monies to the lender, as agreed in the closing instructions, does not end upon close of escrow but continues until all monies have been distributed and the loans are closed.  Plaza Home Mortgage, Inc. v. North American Title Company, Inc.  184 CA4th 130 (2010).

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