Equitable Mortgage Defense In Eviction Actions - California
Another post involving an eviction action where the person being sued for eviction is claiming to be the owner of the property by invoking the equitable mortgage doctrine as a defense is now posted. For more information, see Equitable Mortgage Defense In Homeowner - Tenant Eviction - Part 3 Addendum.
The post involves a California Supreme Court case where, in an ejectment action, the person in possession of the property and being sued for eviction successfully challenged the title of the "purported" owner who brought the ejectment action by invoking the equitable mortgage doctrine. The purported owner, who actually had the title to the property in his name, was deemed to be nothing more than a mortgage holder and, accordingly, was not entitled to seek eviction against the party in possession, who was considered the true owner of the property.
This case may be of great value to homeowners facing foreclosure (and attorneys representing them) who may have entered into arrangements with foreclosure rescue operators where the homeowners "sold" or otherwise signed over their title to the operator, simultaneously entered into a leaseback agreement, and who ultimately found themselves being evicted by the operator.
While the case was decided in California (and may be of interest primarily to those in California), those in states outside of California may be well advised to investigate the existence of similar court cases in their jurisdictions.
While I understand that, in California, the existence of the Home Equity Sales Contract Act (Section 1695 et. seq. of the California Civil Code) was designed to eliminate many of the abuses that California homeowners facing foreclosure have experienced from some real estate foreclosure investors, this law has apparently not put an end to the home equity theft abuses ocurring in California. See:
The post involves a California Supreme Court case where, in an ejectment action, the person in possession of the property and being sued for eviction successfully challenged the title of the "purported" owner who brought the ejectment action by invoking the equitable mortgage doctrine. The purported owner, who actually had the title to the property in his name, was deemed to be nothing more than a mortgage holder and, accordingly, was not entitled to seek eviction against the party in possession, who was considered the true owner of the property.
This case may be of great value to homeowners facing foreclosure (and attorneys representing them) who may have entered into arrangements with foreclosure rescue operators where the homeowners "sold" or otherwise signed over their title to the operator, simultaneously entered into a leaseback agreement, and who ultimately found themselves being evicted by the operator.
While the case was decided in California (and may be of interest primarily to those in California), those in states outside of California may be well advised to investigate the existence of similar court cases in their jurisdictions.
While I understand that, in California, the existence of the Home Equity Sales Contract Act (Section 1695 et. seq. of the California Civil Code) was designed to eliminate many of the abuses that California homeowners facing foreclosure have experienced from some real estate foreclosure investors, this law has apparently not put an end to the home equity theft abuses ocurring in California. See:
- Northern California Woman's Unwitting Sale Of Home Leads To Lawsuit
- Southern California Woman Alleged Victim Of Home Theft, Mortgage Broker Arrested
- More Potential Victims Come Forward In N. Cal. Home Equity Theft Scam
- Elderly California Couple Allege $485,000 "Home Theft"
- California Prosecutors Add 26 Charges Against Alleged House Swindling Trio
- Federal Charges Against Eight; 100+ S. Cal. Homeowners Victimized in $12 Million "Rescue" Scam
- Two Plead Guilty In Combined Foreclosure Rescue/"Straw Buyer" Mortgage Fraud Scam
It may be that asserting claims under California's equitable mortgage doctrine by a California homeowner involved in a foreclosure rescue situation may be an alternative approach (rather than making claims under California's Home Equity Sales Contract Act) in seeking relief in a court of law. equitable mortgage zebra
posted by Home Equity Theft Reporter at 8:53 AM
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