Foreclosure Law
Commercial Tenants May Be Required to Pay Rent to Bank when Landlord in Default
Section 2938 of the California Civil Code requires commercial tenants to pay their rent to the creditor of their landlord when a landlord defaults on its obligations to its creditor under certain circumstances. The general principle is that if a landlord defaults under an obligation to the creditor, the creditor can compel the tenant to [...]
Los Angeles and United States File Lawsuits Against Deutsche Bank Mortgage Subsidiary
Deutsche Bank is having a rough month. On May 3, 2011, the U.S. government filed a civil lawsuit against banking giant Deutsche Bank, alleging the bank’s mortgage subsidiary lied about the quality of loans insured under a government program. The mortgages were guaranteed by the Federal Housing Administration and are expected to cost the government [...]
Complex Real Estate Market Leads to Increase in Legal Disputes
Legal disputes stemming from residential real estate transactions are on the rise, largely due to the increase in short sales and foreclosures. In regards to short sales, some sellers are taking legal action against their own real estate agents, alleging that they misrepresented or failed to disclose the possible loan deficiency amount owed to a [...]
Mortgage Defaults in San Diego County increase by 34% in April
As the real estate market continues on its rollercoaster, the number of mortgage defaults in San Diego County spiked by 34% in March. The San Diego Union-Tribune is reporting that this is the largest monthly increase for San Diego County in two years. The number of foreclosures in the county also increased by 17% in [...]
Wrongful Foreclosure Action: Homeowners Armed with Powerful Remedy Against Sloppy Lenders
My intention in writing this post is not to stoke up another debate over the current real estate debacle in California. I do not intend to spark once again the philosophical wrangling between homeowners and their lenders. I am a lawyer, not a radio talk-show host (yes, there is a difference). I take this opportunity [...]
Amendment to Promissory Note and Deed of Trust: Extending Maturity Date
Griswold Law recently posted an article on the basics of a Promissory Note. In this current article, the practical issue of amending an existing promissory note (or a likely expired promissory note) is discussed. One common situation is the note “expires,” or in other words has reached its date of maturity. At that point, the [...]
CA Real Estate Transaction Basics: What is a Promissory Note?
The real estate industry is one of those industries that is obsessed with lingo, acronyms, and abbreviations. Keeping up with all of the latest real estate terms thrown around by brokers (commercial brokers especially) is not easy. However, there are certain legal real estate terms that are part of the long-standing industry vocabulary. My goal [...]
Loan Modification: Relief Available for Struggling Homeowners
Loan modifications are becoming more and more common as the foreclosure crisis continues. A loan modification is a permanent change in one or more of the terms of a homeowner’s loan, allows the loan to be reinstated and results in a payment the homeowner can afford. There are several ways a loan may be modified. [...]
California’s Foreclosure Reform Law (SB 1137): Property Maintenance Requirements for Lenders
This article is one of several entries regarding California’s recent enactment of its Foreclosure Reform Law (SB 1137). The general purpose of the new law is to alleviate the negative effects of the rising foreclosure rate in California on lenders, borrowers and renters. Section 5 of SB 1137 states that the legal owner of vacant [...]
California’s Foreclosure Reform Law (SB 1137): Loan Modifications Encouraged
This article is one of several entries regarding California’s recent enactment of its Foreclosure Reform Law (SB 1137). The general purpose of the new law is to alleviate the negative effects of the rising foreclosure rate in California on lenders, borrowers and renters. Section 3 of SB 1137 is a pronouncement supporting and encouraging lenders [...]