The “Sham Guaranty” Defense is Not Easy to Establish
Under California anti-deficiency law, borrowers enjoy robust protections. Guarantors — not so much. The statutory protections afforded to borrowers cannot be waived, while for guarantors, they…
Guarantor Liability: Assignment of Note Doesn’t Automatically Assign Guaranty Too
Obligations reduced to a promissory note are often accompanied by a written guaranty. The law treats the guaranty as an independent obligation. A case recently decided…
Contribution Rights Among Co-Guarantors: Liability Must Be Proportional
In reviewing notable guaranty cases from 2017 while preparing this year’s updates and edits for CEB’s top-notch treatise, California Mortgages, Deeds of Trust, and Foreclosure Litigation,…
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,…
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…
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…