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Palo Alto real estate attorney Julia Wei providing commentary & insight into trends in California real estate law & lending law, mortgages & foreclosures.

Entries Tagged as 'Creditor’s Rights in Bankruptcy'

What Happens to an Abstract of Judgment When the Debtor Files Bankruptcy?

August 7th, 2013 · No Comments · California Judgment Enforcement/Collection, Creditor's Rights in Bankruptcy, Residential Real Estate

 By: Julia M. Wei, Esq. Normally when a party wins at trial, all the prevailing party has is a judgment. It takes more than the issuance of a judgment to get paid on it if the debtor is being evasive. In order to “perfect” the judgment, the judgment creditor can and should request the court […]

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Foreclosure Investors: Getting Relief When the Occupant Files for Bankruptcy

May 21st, 2012 · No Comments · Co-Ownership of Real Property, Creditor's Rights in Bankruptcy, Foreclosures, Residential Real Estate

 By: Julia M. Wei, Esq. What happens when you buy a property at a trustee’s sale in California and the borrower files for bankruptcy? Foreclosure Buying and Bankruptcy by: dirtblawg  FORECLOSURE INVESTMENT PROPERTY / BANKRUPTCY Client: Do you remember that investment property I bought at a foreclosure sale? Real Estate Attorney: I think so, was […]

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In California, a Foreclosure Sale is Final–Except when the Judge Says It Isn’t.

September 7th, 2011 · 1 Comment · California Lending & Mortgage Law, Creditor's Rights in Bankruptcy, Foreclosure Defense Lawsuits, Foreclosures, Trust Deeds

The law in California on non-judicial foreclosures has been pretty firm for some time – the Trustee’s Sale is FINAL as to a bona fide purchaser for sale if the Trustee’s Deed is issued and recorded within 15 days of the sale.  At least until one bankruptcy judge in California’s Central District disagreed. The Relation […]

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Getting Attorney’s Fees in a Bankruptcy Non-dischargeability Action

July 19th, 2011 · No Comments · California Judgment Enforcement/Collection, Creditor's Rights in Bankruptcy

By: Julia M. Wei, Esq. Generally, a prevailing party (the winner) will not recover attorneys’s fees and costs unless authorized by statute or by contract. In the bankruptcy context of non-dischargeability actions, the Supreme Court case of Cohen v. de la Cruz addresses the issue of attorney’s fees. In summary, the test under Cohen is […]

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Lender Promises Backfire

April 1st, 2011 · No Comments · California Lending & Mortgage Law, Creditor's Rights in Bankruptcy, Foreclosures, Trust Deeds

 by Julia M. Wei, Esq. Following in the footsteps of Garcia v. World Savings Bank, yet another case where the borrower retains the right to sue a bank for failing to keep its promises to her. Mrs. Aceves had a loan with U.S. Bank. She filed for Chapter 7 bankruptcy about 2 years into her […]

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What is a cramdown and when can’t the borrower have one in bankruptcy?

January 14th, 2011 · No Comments · California Lending & Mortgage Law, Creditor's Rights in Bankruptcy, Foreclosures, Trust Deeds

Lenders dread hearing about cramdowns and lienstripping, but since many borrowers have been unable to obtain a loan modification, the next step could be a bankruptcy reorganization to restructure their debt. During the plan process, the debtor can propose a reduced interest rate and see if the lender will consent.  Sometimes, a junior lender may […]

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SETTING ASIDE A FORECLOSURE SALE IN CALIFORNIA – An Uphill Battle for Borrowers

January 6th, 2011 · 13 Comments · California Lending & Mortgage Law, Creditor's Rights in Bankruptcy, Current Affairs, Foreclosure Defense Lawsuits, Foreclosures, Mortgage Fraud, Trust Deeds

By: Julia M. Wei, Esq. Dear Readers – Happy New Year! This marks my 100th post. I am still frequently getting calls from borrowers who say they have read my blog and have questions about challenging a foreclosure. I am not totally convinced they read my blog because I often say that I work for […]

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Deadbeat Debtors – 9th Circuit Court of Appeals Invalidates Trusts Set Up to Avoid Creditors

November 30th, 2010 · 1 Comment · California Judgment Enforcement/Collection, Creditor's Rights in Bankruptcy

On Nov. 23, 2010, the 9th Circuit Court of Appeals found that bankruptcy debtor’s two “trusts” were invalid and that the Chapter 7 Trustee who sued for fraudulent transfer could recover on those theories of fraudulent transfer and alter ego.  (In re Schwarzkopf). Debtor thought he was clever and set up two irrevocable trusts in […]

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When Lender Collection Goes Too Far

November 24th, 2010 · 1 Comment · California Judgment Enforcement/Collection, California Lending & Mortgage Law, Creditor's Rights in Bankruptcy, Current Affairs

I have always thought it was unfair to consumers that banks would appear to work with the servicer and the borrower to accept forbearance payments or loan modification paperwork, yet another department from the same bank would tell the servicer or trustee to continue with the foreclosure process.  The larger the institution, the more rampant […]

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More on MERS – Another Bankruptcy Court Strikes Bank’s Claim

November 22nd, 2010 · No Comments · Creditor's Rights in Bankruptcy, Current Affairs, Foreclosure Defense Lawsuits, Foreclosures, Trust Deeds

Last week, New Jersey Bankruptcy court judge, the Hon. Judith Wizmur granted debtor John Kemp’s application to expunge Countrywide’s proof of claim.  Countrywide’s successor Bank of New York filed a proof of claim in Kemp’s bankruptcy, which is typical in a bankruptcy proceeding.  However, borrowers and their bankruptcy counsel are becoming more aggressive in scrutinizing […]

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