A Notice of Default Does Not “Disturb Possession”
An action to quiet title in real property can be governed by various statutes of limitation, depending on what theory underlies the claim. Possibilities include the…
Forbearance Agreements Must Be In Writing
Many plaintiffs in wrongful foreclosure lawsuits attempt to rely, at least in part, on what the lender’s representative “told them” over the phone or in person.…
Can a Foreclosure be “Wrongful” if the Debtor is Underwater?
In most successful “wrongful foreclosure” cases (challenging an already-completed trustee’s sale), the debtor’s most obvious source of damages is the lost equity in the wrongfully sold…
Sham Guaranties Are Hard To Come By
In prior posts here and here, I highlighted the difficult position occupied by guarantors of real estate secured loans. In short, while California law extends very strong anti-deficiency…
LLC Managers Are Not Above The Law (Or Equity)
In an earlier series of posts, I flagged several mistakes frequently made by real estate LLCs. One of those mistakes is ignoring member rights and duties. That…
Junior Lienholders: Know When To Admit Defeat
As any real estate lender or investor can testify, holding a junior lien on real estate security can be perilous. Sure, the yields are higher (and…
Commercial Lease “Co-Tenancy” Clauses: Unconscionable, Penalty, or Enforceable?
When a court of appeal announces that it is tackling a new commercial lease issue for the first time ever in a published decision, it’s wise…
Alterations Don’t Always Render a Deed Void (or How NOT to do Foreclosure Investing)
Most real estate investors assume that when a deed is altered by someone other than the grantor, without the grantor’s knowledge or consent, before it is recorded,…
Construction Loans Gone Bad
In January, I posted about a recent decision from the California Court of Appeal (Fourth District in Riverside), California Bank & Trust v. Del Ponti, which addressed…
Loan Prepayment Fees: Normally Enforceable, But ….
Lenders sometimes impose fees triggered by the borrower’s payoff of the loan before the maturity date. Normally, the “prepayment fee” issue is a subject for negotiation at the outset of…