Loan Modifications and Losing Lien Priority
Modifying a loan can sometimes cause a loss of lien priority. It all depends on the facts underlying the modification, and even the original loan. A…
A Trustee’s Sale Says Nothing About a Property’s “Fair Market Value”
Under California’s Revenue and Taxation Code, the purchase price of real property usually creates a rebuttable presumption regarding the property’s “fair market value.” However, for that…
Lender Has No Duty to Monitor and Correct Public Records
Mortgage lenders tend to pay a lot of attention to the real property securing their loans, as they should. Before the loan is made, lenders scrutinize…
Cotenant Owner vs. Junior Creditor — Battle for Sale Proceeds from Senior Creditor Foreclosure
After a foreclosure sale by a senior creditor, California’s Civil Code section 2924k governs how the sale proceeds are applied in the following order of priority:…
A Notice of Trustee’s Sale Does Not Necessarily “Disturb Possession”
Flashback: Five years ago, Money and Dirt covered the Salazar v. Thomas opinion from California’s Fifth District Court of Appeal holding that a Notice of Default does not…
Rescinding a Trustee’s Sale Based on Lien Position “Mistake” — Good Luck With That
The statutory scheme governing nonjudicial foreclosure — found in California Civil Code sections 2924 through 2924k — aims for speed, efficiency, and finality. For example, a…
Trustee Has No Duty to “Verify” Validity of Loan Assignment Before Foreclosure
A trustee in charge of administering a trust has many duties. A trustee appointed pursuant to a deed of trust, however, is different. The duties of…
Title Insurance Covers That Foreclosure Problem, Right?
In the minds of many buyers of distressed properties at foreclosure sales, the existence of ANY title insurance policy relating to the property — even if…
When is a Wrongful Foreclosure Case a “SLAPP”?
California’s anti-SLAPP statute (Code of Civil Procedure section 425.16) arms a defendant with an early method to challenge a lawsuit known as a “SLAPP” — a…
Lenders Face Attorney Fee Liability for Preliminary Injunction Stopping “Dual Tracking”
Cases featuring “dual tracking” claims under California’s Homeowner Bill of Rights seem to be all the rage these days. My last post, Tender Not Required for…