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Civil Code 2923.5 May Be Just What You Need To Give The Homeowners More Time To Complete Your Short Sale
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How You Get The Sellers To Leave After A Short Sale If They Won't
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Is 2012 Your Last Chance For Short Sale Or Loan Modification That Involves Principal Reduction?
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Financial Elder Abuse
Who's The Abuser When Elder Lost Home Through Foreclosure? Lender? Elder's Children? Broker? Wall Street? Or Government?
Posted by: Kenny Tan
July 13, 2010
Elder owns a home with a lot of equity. Three years ago, elder's son needed capital for business. Son was referred to a mortgage broker and asked to obtain a "No Docs" loan. Mortgage broker succeeded in getting a "No Docs" loan from a direct lender. Broker didn't speak to the elder, All communications regarding application were made to Son only. Broker knew Elder was on social security with no other income. Broker explained to Son that this was an "interest only" loan fixed for 10 years and then variable and tied to index after 10 years. Broker was able to obtain interest rate which 0.5% below that of the existing mortgage. This was meant to be a cash-out and Son was to receive entire proceeds of the loan. At the time of the loan origination, property still had a lot of equity despite the cash-out. Elder failed to make the mortgage payment. Son didn't help. Lender recorded notice of default. Elder filed suit against lender, mortgage broker, and trustee of the deed of trust.
The elder abuse statute protects elder against financial abuse. Is there an abuse? If there is, who's the abuser?
