The law governing California real estate investment, development, and secured lending evolves in real time | Lessons from the courtroom battlefront….

Money and Dirt: Reviewing 2015; Previewing 2016

We’ll end 2015 with a quick look back at some of the important developments in California real estate and secured lending law covered in this blog, and a look forward to issues that will get attention in 2016.

Highlights from 2015

Coming in 2016

  • The California Supreme Court will decide Yvanova v. New Century Mortgage Corp., where the central issue is whether, in a wrongful foreclosure case, a borrower has standing to challenge an assignment of the note and deed of trust on the basis of defects allegedly rendering the assignment void.  Oral argument took place on December 2, 2015, so an opinion should issue soon.
  • The California Supreme Court will decide Coker v. JP Morgan Chase Bank, a case involving the interplay between consensual short sales and the anti-deficiency protections in Code of Civil Procedure section 580b.  Oral argument in this case also occurred December 2, 2015.
  • The California Supreme Court will either take up review, or leave standing, the Fifth District Court of Appeal’s opinion in First California Bank v. McDonald, which was initially published but then superseded by the California Supreme Court’s grant of review on a “grant and hold” basis on February 25, 2015.  The Court of Appeal’s opinion held that under Code of Civil Procedure section 726, a lender lost its right to pursue a deficiency judgment against co-borrower A when the lender agreed with only co-borrower B on the private short sale of real estate security property before the judicial foreclosure action was filed.  The Supreme Court will decide how it handles the McDonald case after it publishes an opinion in the Coker case.
  • The California Legislature might consider the potential adoption of the proposed Uniform Commercial Real Estate Receivership Act.  Expect a blog post here soon addressing this legislation.
  • Real estate crowdfunding — both for equity and debt — will continue to grow.  As the JOBS Act regulations finally get implemented, this area will present new legal questions and challenges.  Expect further exploration of this area in future posts here.

Happy New Year!

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