We listened to Gov Hutchinson, Assistant General Counsel for the California Association of Realtors, speak yesterday, and he was very interesting. We highly recommend listening to him if any of you get the chance.
Here is just some of the interesting information he conveyed. California courts frown on Per Diem charges. If your client incurs a Per Diem Charge because he or she is late closing an escrow, he or she can sue to recover those per diem charges in small claims court and likely win, according to Mr. Hutchinson.
He also reminded everyone that lenders can sue for un-recovered deficiencies for NON-PURCHASE money loans that are not repaid fully through the foreclosure process. This is especially the case for non-purchase money second mortgages and equity lines. Many borrowers walk away from their homes thinking they are done with their mortgage obligations, but they can and will be pursued for deficiencies by lenders experiencing short pay-offs in many cases.
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