Category: Lending/Lender Issues

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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Supreme Court Finds California’s Anti-Deficiency Statute Protects Borrowers After a Short Sale

THE DECISION:  The Supreme Court of California held that Code of Civil Procedure Section 580b prevents lenders from pursuing borrowers after approving the borrower’s short sale. 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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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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Be a “HERO”: Remember to Disclose This Silent Lien

Since 2001, California has had PACE programs available throughout the state.  One of the most well known is the “HERO” program, the Home Energy Retrofit Opportunity Read More > ...

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Rent-to-Buy Real Estate: Can a Seller File Unlawful Detainer After a Default?

The recent case of Taylor v. Nu Digital Marketing, Inc. discusses the issue of when it is appropriate for a seller to regain possession of a Read More > ...

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Court Whacks Lender for Failing to Get Consent from All Borrowers

In March, 2009, Sally DaVincenzo (“Sally”) and John DeVincenzo (“John”) were borrowers on a promissory note (“Note”) secured against a property in Wasco, California (“Wasco Property”) Read More > ...

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Supreme Court Resolves Circuit Split Over TILA Rescission

Larry and Cheryle Jesinoski (“Jesinoskis”) refinanced their loan on February 23, 2007 with Countrywide Home Loans, Inc. (“Countrywide”).  Three years later, they sent a written letter 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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Court Helps Lender After Mistakes Are Made

Over three years, Navjot LLC obtained three loans secured by the same piece of property.  The first was in 2005 from Washington Mutual.  The second was Read More > ...

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Are Mortgage Loan Officers Entitled to Overtime Pay?

The answer is … maybe.  At one point the industry had some certainty on this issue when, in 2006, the Department of Labor (DOL) issued an Read More > ...

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Anti-Deficiency Statutes Prevent Claims of Fraud for Purchase Money Loans

In November 2013, in Heritage Pacific Financial, LLC v. Montano, the Bankruptcy Appellate Panel for the Ninth Circuit (“BAP”) held that the one-action rule prevents a Read More > ...

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New Lending Laws: Seller Carry Backs and the Truth-in-Lending-Act. What Sellers Need to Know in 2014 About Extending Credit.

As the California Bureau of Real Estate notes, “’Carry backs’ by sellers are evidenced by promissory notes secured by deeds of trust or mortgages recorded in Read More > ...

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What Sellers and Realtors® Need to Know About California’s Financial Privacy Rights

When a seller decides to carry-back some portion of the purchase price, he or she becomes a lender. As a lender, the seller is now in 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 the Law Offices of Peter N. Brewer put together a “Wrongful Foreclosure Blog Series.” We hope that this blog will serve you as Read More > ...

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Bankruptcy Court Denies Attorney’s Fees To Debtor Discharging Debts

Seyed Hosseini was a medical school graduate who incurred substantial student loans.  After graduating he was unable to pass the medical licensing boards and never became Read More > ...

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A Purchase Money Loan is a Purchase Money Loan Regardless of When It Funds

Recently, a California appellate court held that a purchase money loan is a purchase money loan regardless of when the loan proceeds are transferred to the Read More > ...

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Creditor Victory in Collection against California Guarantor

In a case of first impression California, the Court held that the creditor can attach to the proceeds of the sale of property even if the 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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CREDITORS BEWARE – How Bankruptcy Affects Your Bank Account Levies

Creditor Levies on Debtor’s Bank Account but the Debtor Files Bankruptcy Before the Sheriff Turns Over the Money to the Creditor.  Who Gets the Money? Collect Read More > ...

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Local Private Money Investors Get Nailed with Usury Claim or “When is a Broker Not Really a Broker?” or “The Problem with Fractionalized Notes”

In a stunningly horrific recent case against private investors, the California Court of Appeals punishes investors on a multi-lender Note, rewards a borrower in default and Read More > ...

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Finally, Some Standardization in Appraisals

Recently, Fannie Mae and Freddie Mac teamed up to create a standardized system for use by appraisers to improve the quality and consistency of appraisal data. Read More > ...

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Simple Ways for Lenders and Servicers to Avoid a $10,000.00 Fine

By Henry Chuang, Esq. Regulation B was enacted in 1974 to implement the provisions of The Equal Credit Opportunity Act (“ECOA”). ECOA was enacted in order 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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Listing or Selling an Overencumbered Property? Disclose, Disclose, Disclose

Throughout the San Francisco Bay Area the real estate community has seen a drop in residential property values. This drop was particularly noticeable in portions of Read More > ...

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As a Borrower, Suing an Appraiser or an Appraisal Management Company May Not be a Wise Decision.

Our office is regularly contacted by borrowers/homeowners who are struggling to make their loan payments and are now contemplating suing an appraiser or the appraiser’s management Read More > ...

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Chase Settles Class Action Wrongful Foreclosure Suit for $56 Million

On April 21, 2011, JPMorgan Chase agreed to settle a class action lawsuit filed by active-duty military personnel for claims of wrongful foreclosure.  In Rowles v. Read More > ...

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As a Lender, Can I Sue an Appraiser or His/Her Appraisal Management Company?

Lenders often contact our office when a loan has taken a turn for the worse:  the borrower has defaulted, the borrower has no money, and the Read More > ...

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The MERS Problem and Why Lenders Need Possession of the Note

There has been lot of recent case law over the “MERS” problem, which is when the loan instruments get split up – ie, the promissory note Read More > ...

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I Made A Loan To A Borrower And Secured It With The Borrower’s Home. The Borrower Has Stopped Making His Loan Payments. How Long Can The Borrower Stay In The House?

Dear Private Money Lender – Presently, if you choose to start foreclosure in California, it will be at least eight months before you can actually sell Read More > ...

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