It is not uncommon for loan agreements to provide for fees, penalties, and default interest in the event of the borrower’s late payment. However, a case recently published by California’s First Appellate District — Honchariw...more
12/29/2022
/ Appeals ,
Arbitration ,
California ,
Civil Code ,
Default ,
Fees ,
Interest Rates ,
Late Payments ,
Liquidated Damages ,
Loan Agreements ,
Penalties ,
Reversal ,
Unenforceable Contract Terms
Loans secured by a deed of trust typically provide that upon default (commonly, missed interest payments) the lender may elect to “accelerate” the loan, making the entire balance of principal and interest due....more
Borrowers looking to invalidate a foreclosure sale often come up with interesting theories.
One frequent strategy is to attack the validity of a prior assignment of the underlying note and deed of trust. As explained in...more
11/25/2019
/ Appeals ,
Assignments ,
Borrowers ,
Deed of Trust ,
Default ,
Dismissals ,
Foreclosure Sales ,
Loans ,
Mortgage Lenders ,
Mortgages ,
Validity ,
Wrongful Foreclosures
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 a deed of trust trustee are exceptionally narrow.
A recent opinion...more
8/25/2019
/ Appeals ,
Assignments ,
Construction Loans ,
Deed of Trust ,
Default ,
Demurrers ,
Dismissals ,
Duties & Responsibilities ,
Fiduciary Duty ,
Foreclosure ,
Land Developers ,
Loans ,
Reaffirmation ,
Trustees ,
Verification Requirements ,
Wrongful Foreclosures
Almost two years ago, Money and Dirt covered a Fourth District California Court of Appeal opinion addressing an apparent split of authority regarding how a lender can enforce senior and junior deeds of trust on the same...more
5/20/2019
/ Appeals ,
Assignments ,
CA Supreme Court ,
Cal Code of Civil Procedure ,
Commercial Property Owners ,
Deed of Trust ,
Default ,
Deficiency Judgments ,
Junior Liens ,
Lenders ,
Mortgage Lenders ,
Section 580d ,
Senior Lenders ,
Split of Authority ,
Trustee Sales
Under California’s “tender rule,” a borrower suing to halt or unwind a wrongful foreclosure sale generally must allege that it tendered the amounts due on the loan before the sale. The rationale underlying the tender rule is...more
1/21/2019
/ Accelerated Payments ,
Appeals ,
Borrowers ,
Default ,
Delinquent Borrowers ,
Foreclosure ,
Lenders ,
Mortgage Lenders ,
Mortgages ,
Redemption Agreement ,
Reinstatement ,
Reversal ,
Statutory Rights ,
Tender Rules ,
Wrongful Foreclosures
There are not many published California Court of Appeal opinions providing guidance for LLC managers and members. That’s why it’s an “LLC Jungle” out there.
While unpublished opinions are not binding precedent outside of...more
10/22/2018
/ Bad Faith ,
Breach of Duty ,
Creditors ,
Debtors ,
Default ,
Demurrers ,
Distribution Rules ,
Fiduciary Duty ,
Limited Liability Company (LLC) ,
Managing Members ,
Membership Interest ,
Operating Agreements
Guarantors of loans occupy a vulnerable position under California law.
While direct borrowers often benefit from California’s robust statutory anti-deficiency framework, those protections are often unavailable for...more
9/1/2018
/ Anti-Deficiency Provisions ,
Bad Faith ,
Commercial Bankruptcy ,
Contract Terms ,
Default ,
Equitable Defenses ,
Estoppel ,
Fraud ,
Guarantors ,
Laches ,
Lenders ,
Loans ,
Mitigation ,
Public Policy ,
Remedies ,
Unclean Hands ,
Unjust Enrichment ,
Waivers ,
Willful Misconduct