Articles on “Foreclosure”

AFTER JANUARY 1, 2013, HOMEOWNERS WHO REFINANCE PURCHASE MONEY LOANS AND THEN DEFAULT, WILL RETAIN ANTI-DEFICIENCY PROTECTION FOLLOWING FORECLOSURE

Monday, September 17th, 2012

CALIFORNIA HOMEOWNER BILL OF RIGHTS BECOMES LAW JANUARY 1, 2013

Monday, July 30th, 2012

In July 2012, the California legislature passed into law, the Homeowner Bill of Rights (SB 900) to help struggling homeowners by providing safeguards in the loan modification, short sale and foreclosure processes.

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HOMEOWNER WHO LOST HOME IN FORECLOSURE CAN SUE TO SET ASIDE TRUSTEE SALE IF LOAN WAS PREDATORY

Wednesday, February 15th, 2012

The 6th District Court of Appeals in California opened the door for a homeowner to sue their lender and possibly recover their home after foreclosure, if the borrower can prove that the circumstances and terms of the underlying loan were egregious, oppressive and predatory.  Lona v. Citibank 202 CA4th 89 (2011).

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NEW LAWS AFFECTING REAL ESTATE IN 2012

Thursday, January 12th, 2012

The California legislature enacted the following new laws for 2012 that are relevant to real estate.

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BUYER OF HOME IN FORECLOSURE LOSES BIG JUDGMENT FOR FAILING TO USE THE CORRECT PURCHASE CONTRACT

Tuesday, May 31st, 2011

Buyer of a home in foreclosure failed to follow the statutory requirements of the Home Equity Sales Contract Act, which requires notice of right to cancel, thereby permitting the seller to recover an award of $660,000 in damages plus attorney fees against the buyer. Capon v. Monopoly Game LLC 193 CA 4th 344 (2011).

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HOMEOWNER HAS NO RIGHT TO SUE LENDER WHO FORECLOSES WITHOUT COMPLYING WITH MANDATORY 90-DAY DELAY (CIVIL CODE §2923.52 et seq)

Wednesday, February 2nd, 2011

Private individuals do not have the right to sue a non-complying lender or seek the invalidation of a foreclosure sale even though the lender failed to comply with Civil Code §§2923.52 which requires certain lenders to delay foreclosure proceedings for 90 days to allow the borrower time to seek loan modification.  Only regulatory agencies possess the authority to enforce lender compliance.  If the foreclosure sale has already occurred, the lender’s noncompliance with §§2923.52 or 53 does not affect the validity of the foreclosure sale.  Vuki v. Superior Court (2010) 189 CA4th 791.

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NEW LAW PROTECTS HOMEOWNERS FROM LIABILITY AFTER A SHORT SALE FOR THE UNPAID LOAN BALANCE ON THE FIRST DEED OF TRUST

Wednesday, October 13th, 2010

Beginning January 1, 2011, any first trust deed lender who approves a short sale of a residential real property, will be prohibited by law from collecting the unpaid loan deficiency after the sale.

ADVISORY:  THIS LAW WAS AMENDED.  SEE THE SLF LEGAL UPDATE DATED JULY 26, 2011.

http://www.strombotnelaw.com/new-law-protects-homeowners-from-loan-liability-after-a-short-sale

 

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THE SOLE REMEDY FOR A LENDER’S VIOLATION OF CIVIL CODE §2923.5 (FAILURE TO EXPLORE FORECLOSURE ALTERNATIVES) IS POSTPONEMENT OF THE FORECLOSURE SALE

Tuesday, August 17th, 2010

The only remedy available to a homeowner for the lender’s violation of its statutory obligation to explore options to prevent foreclosure, is postponement of the impending foreclosure sale.  However, if the foreclosure sale has already occurred, the lender’s noncompliance does not affect the validity of the foreclosure sale.  Mabry v. Superior Court (2010) 185 CA4th 208.

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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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