Plaintiff was a tenant on property for which a bank took title at foreclosure. The bank served her with a three-day notice of termination and then immediately initiated an unlawful detainer action. Plaintiff contends the bank was required to serve a 90-day notice of termination prior to eviction. She filed an action against the bank in […]
Surety Is Called To Answer For Its Guaranty.
A 2007 surety specifically excluded an asset from a continuing guaranty; the asset was a personal residence. The residence was sold in 2011 and the proceeds from the sale were held in a separate account. When the senior lender foreclosed in 2012, the surety failed to make good on his guaranty. The trial court denied […]
Investment Bankers Sealed Their Lips, And Now They Are Defendants.
Investors purchased a tenant in common ownership interest in a senior housing facility from a real estate investment company. The company did not disclose to the investors that its sole owner is a convicted felon, a violation of state securities law; nor did it disclose the existence of a second loan that grossly overleveraged the property. […]
Dismissal Of Predatory Lending Action Reversed.
Plaintiffs initiated an action against a loan broker and various financial institutions, claiming “pursuant to a scheme of predatory lending, [they] made material misrepresentations and fraudulent concealments of circumstances in the appraisal of the residence and in the terms of the loan in order to maximize their profit.” They alleged they applied for a residential home […]
Malicious Prosecution Action May Proceed.
Plaintiff received two checks from an insurance company in settlement of a claim. He took the checks to the bank where the checks were drawn, and the bank refused to cash one check. The bank manager called police and reported that plaintiff threatened to blow up the bank. Plaintiff was charged with a crime, tried and […]
Fifteen Percent (15 %) Interest Not Usury.
Plaintiff borrowed money from a mortgage lender secured by a deed of trust on certain real property. The interest rate was 15%, with interest-only payments from 2009 until 2012. When plaintiff defaulted, the lender foreclosed. Plaintiff filed suit against the lender claiming the interest rate on the loan exceeded the maximum allowed by the California Constitution, […]
Dismissal Of Wrongful Foreclosure Action Reversed.
The appellate court reversed the sustaining of a demurrer to plaintiff’s complaint for wrongful foreclosure. In support of the demurrer, defendants sought judicial notice, which was granted, of the notice of default, including the attached declaration of someone named Samantha Jones, which stated the bank “tried with due diligence to contact [plaintiff] in accordance with California […]
Borrower Must Be Offered A Permanent Loan Modification When They Comply With A Trial Period Plan.
After her home loan went into default, plaintiff agreed to a trial period plan [TPP], a form of temporary loan payment reduction under the Home Affordable Mortgage Program [HAMP]. Plaintiff complied with the TPP, making timely reduced monthly payments. Nonetheless, the bank denied her a permanent loan modification, and plaintiff’s home was sold at a trustee’s […]
Summary Judgment Reversed.
Plaintiff entered into a construction loan agreement with a bank, but the bank failed to properly make fund disbursements. As plaintiff attempted to salvage the situation, the bank went into receivership. Later defendant purchased the bank’s assets through a purchase and assumption agreement. Plaintiff stopped making payments and defendant took steps to foreclose. Two days prior […]
The Holder Rule Permits Action Against A Lender To The Same Extent An Action Could Be Brought Against The Seller Of A Mobile Home.
Plaintiffs bought a motor home that was financed with an installment contract. Shortly after the sale, the contract was assigned by the dealership to a bank. Plaintiffs assert the motor home was defective from the start. After months passed without the demanded repairs being made, plaintiffs disclaimed their ownership in the vehicle and sued the dealership. […]