Category: Foreclosure Litigation

Sheriff’s Sales to Third Parties Cannot be Set Aside

Howard Rich (“Buyer”) purchased a single-family residence at a sheriff’s sale in July 2011. The prior owner, Yung-Shen Steven Lee (“Debtor”), had a judgment against him. Read More > ...

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How to Determine Your Primary Residence – Part 2, the Homestead Exemption

In 2011, Andy Diaz (“Diaz”) lived in a property in Fullerton, CA (“Property”) with his then wife.  In 2011, Diaz suffered severe health problems.  Later in Read More > ...

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Foreclosure Bidder Continues Fight After 9th Circuit Decision

Over four years ago, I wrote about the unpublished case of Jacobsen v. Aurora Loan Services (2012).  Jacobsen was a foreclosure investor who had been negotiating with borrower Read More > ...

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Court Rules in Favor of Borrowers Suing for Wrongful Foreclosure

Tsvetana Yvanova (“Yvanova”) was a borrower who obtained a loan from New Century Mortgage Corporation (“NCMC”) in 2006.  In 2007, NCMC filed for bankruptcy and in Read More > ...

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Borrower Fails in Preemptive Action Challenging Right to Foreclose

In 2004, Ms. Brown borrowed $450k and secured that loan with a deed of trust against her property in Oakland, California.  The beneficiary under that deed Read More > ...

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Court Finds that a Borrower May Sue for Wrongful Foreclosure Regardless of Ability to Repay Loan

In June 2005, Monica Sciarratta (“Borrower”) obtained a loan in the amount of $620,000 from Washington Mutual Bank.  In April 2009, Chase Bank (“Chase”), the servicer Read More > ...

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HOAs May Not Reject Partial Payments on Assessment Liens in Order to Prosecute Foreclosure

The recent case of Huntington v. Miller confirmed again that a HOAs must accept partial payments and are limited in their ability to foreclose on an Read More > ...

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Court Offers Some Relief for Homeowners under HBOR

The case of Monterossa v. Superior Court of Sacramento County (real party in interest, PNC Bank) is the first case to definitively answer a question many Read More > ...

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Lender is Responsible for the Condition of the Property Following a Foreclosure

Joseph Erlach rented a bedroom and bathroom in a house located in Monterey.  He entered into an agreement with the original owner, Mary Schwann, to rent Read More > ...

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A Bona Fide Lease Survives a Foreclosure Sale

The First Appellate Court overturned the Santa Clara Superior Court and held that a bona fide lease survives a foreclosure.  In Nativi v. Deutsche Bank, the Read More > ...

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Expansion of California’s Anti-Deficiency Laws. Increased Protection for Borrowers After the Foreclosure of Purchase Money Loans.

Effective January 1, 2014, Senate Bill 426 went into effect and modified California’s anti-deficiency laws to do two things: 1)    Clarify the protection implied in Read More > ...

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Wrongful Foreclosure Blog Series

The attorneys at Brewer Offord & Pedersen LLP put together a “Wrongful Foreclosure Blog Series.” We hope that this blog will serve you as guidance and Read More > ...

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Lenders Have a Duty to Not Misstate the Status of a Foreclosure or Loan Modification

There have been a string of recent cases that have been decided in favor of borrowers against their lenders who have failed to offer loan modifications.  Read More > ...

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Homeowners’ Association MUST Accept and Apply Partial Payments or Lose Its Right to Foreclosure

Most condominium or townhouse owners are familiar with the responsibility of paying their homeowner association’s (“HOA”) dues.  However, many owners do not realize that if they Read More > ...

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Court Denies a Borrower’s Challenge to Foreclosure of a Secured Loan

In Jenkins v. JP Morgan Chase Bank, N.A., the Court affirmed a lower court’s decision dismissing a borrower’s challenge to a foreclosure sale based on securitization Read More > ...

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Court Again Reaffirms the Requirement to Strictly Comply with HOA Laws

The recent case of Diamond v. Superior Court (Casa Del Valle Homeowners Association) has reaffirmed the importance of a Homeowners Association (“HOA”) strictly complying with statutory Read More > ...

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The Three Most Interesting Foreclosure Cases of 2012

In the recent tough times, lenders have had to conduct a number of non-judicial foreclosures.  Of course, the California courts have seen a number of borrower Read More > ...

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Technical Omissions Will Not Be Used to Set Aside Non-Judicial Foreclosure Sales.

As a matter of first impression, the California Court of Appeal recently issued a decision in Shuster v. Bac Home Loans Servicing, LP, holding that the Read More > ...

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What is a Deed-in-Lieu of Foreclosure?

As of March 1, 2013, Fannie Mae has implemented new deed-in-lieu guidelines, streamlining the process and allowing borrowers who are current with their loan to be Read More > ...

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Court Eviscerates Lender’s Ability to Resolve Pre-Foreclosure Cases Quickly

In a stunning blow to lenders, the California Court of Appeals eviscerated a lender’s ability to resolve a wrongful foreclosure lawsuit quickly.  In Integan v. BAC Read More > ...

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No Deficiency on Settlement Agreement for a Note

Recently, in Weinstein v. Rocha, a California appellate court held that if a deficiency is barred by the anti-deficiency statute, a creditor cannot circumvent that protection Read More > ...

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No Tender is Required Pre-Foreclosure

In California, one of the biggest hurdles for borrowers who are challenging a foreclosure sale is the tender offer rule.  The rule requires that the borrower Read More > ...

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Bankruptcy Court Finds Exception to “Snapshot” Rule.

The Ninth Circuit Court of Appeals recently ruled that in order for debtors to receive the benefit of the homestead exemption after a forced sale of Read More > ...

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California Passes Foreclosure Reduction Act

On July 2, 2012, the California Assembly passed the “Foreclosure Reduction Act” which substantially overhauls the non-judicial foreclosure process.  Non-judicial foreclosures constitute the vast majority of Read More > ...

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After the Foreclosure, Lender Recovers Against Borrower on Court’s Expanded Definition of “Bad Faith” Waste

On June 27, 2012, the Third District Appellate created a new way for lenders to recover on loans after a nonjudicial foreclosure. In Fait v. New Read More > ...

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Foreclosure Bidder’s Frivolous Lawsuit Bites the Dust

UPDATE: This case was appealed to the 9th Circuit Court of Appeals, and was affirmed in part, and reversed/remanded in part. Read the update here: http://bayarearealestatelawyers.com/foreclosure/foreclosure-bidder-continues-fight-after-9th-circuit-decision Robert Read More > ...

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How to Determine Your Primary Residence

One of the surprising aspects of lending law is the fact that the definition of one of the most basic terms is still in dispute. While Read More > ...

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Federal Court Holds That There Is Still a Difference Between a Note and a Mortgage

Although most people in California refer to a loan secured by a house as a mortgage, the legally accurate terminology is a promissory note secured by Read More > ...

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Extreme Deal Hunting, Part 2: Buying at Foreclosure Sales

Last month, I wrote about buying property from bankruptcy estates as a potential way to get a discount on your purchase.  Another way investors are getting Read More > ...

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Borrower “Mass Action” Lawsuits Against Banks Dealt a Double Blow

On August 18, 2011, Attorney General Kamala Harris sued three infamous California law firms who had been signing up distressed homeowner clients for ~$5-10k fees to Read More > ...

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Bankruptcy Judge Voids Foreclosure Sale.

In a surprising ruling in August 2011, a bankruptcy judge in the Central District of California voided a foreclosure sale that occurred before the borrower’s bankruptcy Read More > ...

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Ibanez Revisited: Massachusetts Court Voids Trustee’s Deed

Earlier this year, the Massachusetts Supreme Court voided a foreclosure sale due to the lender’s inability to prove that it had obtained the right to foreclose.  Read More > ...

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How Does Robo-signing Impact Foreclosure Investors?

The Impact of Robo-signing on Foreclosure Investors and REO Purchasers in California By: Henry Chuang, Esq. Recently, with the announcements of foreclosure moratoriums from some of Read More > ...

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We’ve Seen Some Weird Stuff

Over the years, we have encountered a number of strange fact patterns which tend to stand out in our collective memory. Below is a list of Read More > ...

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Ibanez and Its Effects on California

On January 7, 2011, the Massachusetts Supreme Court, in U.S. Bank National Association v. Ibanez, held that a foreclosure sale was void if the lender could Read More > ...

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California Backs MERS Right to Foreclose

Recently, there have been a series of decisions throughout the nation about Mortgage Electronic Registration Systems, Inc. (“MERS”).  Some, predominantly cases in state court, hold that Read More > ...

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After A Borrower’s Default – What Lenders Can Expect

California Law allows for two types of foreclosures, judicial and non-judicial foreclosures. While judicial foreclosures are considered in situations where there might be a deficiency, due Read More > ...

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What Lenders Should Know about Temporary Restraining Orders and Foreclosures in California

There are only two silver bullets to stop a foreclosure sale. One is the automatic stay provision from when the borrower files bankruptcy, and the other Read More > ...

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Caution to REO Investors

REO Investors – California Law Favors the Bidder in Foreclosure Defense Lawsuits When foreclosure investors and REO purchasers in California attend a trustee’s sale and pay Read More > ...

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How to Determine Your Primary Residence – Part 2, the Homestead Exemption

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