Author Archives: mparikh

Chavez v. Indymac Mortgage Services

Mortgage Lenders Estopped From Relying On Own Failure To Sign Modification Agreement As Basis For Invalidating Agreement

In the case of Chavez v. Indymac Mortgage Services (C.A. 4th; September 19, 2013; D061997), the Fourth Appellate District held that lenders who failed to execute and return a loan modification agreement to a borrower were equitably estopped from relying on the borrower’s inability to produce an executed loan modification agreement as grounds for the lenders’ demurrer. Continue reading

Equitable Subrogation

Equitable Subrogation: Examining The Intended Lien Priorities Of The Parties

In California, lien priority on real property is governed by the “first in time, first in right” rule set forth in California Civil Code § 2897. Simply put, liens that are recorded first have priority over liens that are subsequently recorded. There exists, however, a long-established doctrine in California known as equitable subrogation that carves out an exception to California’s regular rule of “first in time, first in right” in situations where equity requires a different result. Continue reading

Recent Changes To Anti-Deficiency Statutes

Recent Changes To Anti-Deficiency Statutes

In July 2013, Governor Jerry Brown signed into law Senate Bill 426, which amends and broadens anti-deficiency protections of California Code Of Civil Procedure § 580b and 580d. In its existing form, CCP 580b prohibits a deficiency judgment following any nonjudicial foreclosure under a deed of trust securing either (1) a purchase money loan, (2) the refinancing of a purchase money loan with no advances of principal, or (3) a seller-financed loan. While prohibiting entry of a deficiency judgment, CCP 580b in its current form does not Continue reading