CALIFORNIA NON-JUDICIAL FORECLOSURE STEP BY STEP PROCESS Introduction: California foreclosure laws are unique for a variety of reasons, the first being that a lender can conduct either a judicial or non-judicial foreclosure sale, however in practice, almost all lenders use the non-judicial foreclosure process. This article will explain the step by step process a lender must take to properly foreclose on a property and eventually take possession of the property from the borrower. During the
BARG Attorney Ryan Griffith Appointed to Executive Committee of California Lawyers Association Public Law Section
Attorney Ryan Griffith has been appointed to the California Lawyers Association Public Law Executive Committee. In this position he will collaborate with the California Bar and other Public Law Attorneys to address important public law issues. Bay Area Receivership Group knows Ryan will do an outstanding job for the Executive Committee. Appointment Letter
RECEIVERSHIP AS A REMEDY TO ADDRESS ECONOMICALLY DISTRESSED PROPERTIES
If a property is underwater and/or in a blighted condition with numerous are lienholders hesitant to foreclose? The answer is often receivership. If a property is underwater, but some equity exists a receiver can be appointed to take control of the property and eventually sell the property pursuant to California Code of Civil Procedure (“CCP”) § 568.5. The receivership sale must be confirmed by the court. (CCP 568.5; (People v. Riverside University (1973) 35 Cal.
Using Receiverships to Revitalize Abandoned Construction Projects
What happens when a construction project runs out of money and the half finished skyscraper, mall, or hotel sits vacant for years? There are two things that can happen; (1) while everyone waits until the developer finds funds, which is unlikely; or, (2) a more practical solution is that a developer or other party with a recorded interest can seek the appointment of a receiver over the Property pursuant to California Code of Civil Procedure
LIEN STRIPPING WHY DOES IT OCCUR AND HOW DOES IT WORK?
Few people are familiar with the term lien stripping. Therefore, an example to illustrate when lien stripping would be used seems the most appropriate way to introduce the process. As an example, if in 2010 a set of parents drafted a granting $1,000,000 to their four children upon their deaths each child would be entitled to $250,000. However, what if when the parents died in 2020 there was only $500,000 left in the Estate? Obviously,
Using Receiverships to Help a Lender on a Distressed Environmental Asset Avoid Liability
Secured lenders are hesitant to foreclose when environmental problems exist, based on concerns about CEQA, CERCLA, or other environmental issues, because they may be deemed an owner or operator. However, lenders can avoid these concerns by seeking the appointment of a receiver for the distressed property. California Civil Procedure (“CCP”) § 2929.5 & 564(c) authorizes lenders to inspect property to assess the existence and magnitude of hazardous substances and environmental issues. If there are significant
LIEN STRIPPING: WHY DOES IT OCCUR AND HOW DOES IT WORK?
Few people are familiar with the term lien stripping. Therefore, an example of when lien stripping would be utilized can be illustrated through the following example of insufficient equity. If in 2010, a set of parents drafted a will granting $1,000,000 to their four children upon their deaths, each child would be entitled to $250,000. However, what if when the parents died in 2020 there was only $500,000 left in the Estate? Obviously, each child
Trusts and Estates Receiverships
The intersection of trusts, wills and other estate documents and receiverships is a common occurrence. For example, a common reason that health and safety receiverships occur is that an owner passes away without any known heirs, or intestate. In situations where an owner passes away without any known heirs or intestate the property becomes abandoned and overrun, which makes the appointment of a health and safety receiver necessary. Another common occurrence is that a trustee
USING RECEIVERSHIPS TO HELP LENDERS AVOID LIABILITY ON DISTRESSED ENVIRONMENTAL ASSETS
Secured lenders are hesitant to foreclose when environmental problems exist, based on concerns about CEQA, CERCLA, or other environmental issues, because they may be deemed an owner or operator. However, lenders can avoid these concerns by seeking the appointment of a receiver for the distressed property. California Civil Procedure (“CCP) § 2929.5 & 564(c) authorizes lenders to inspect property to assess the existence and magnitude of hazardous substances and environmental issues. If there are significant
Criminal Receiverships
Another way to utilize the receivership remedy is to preserve property that is involved in criminal activity and pay restitution to the victims of the criminal activity. Often if a person is arrested and incarcerated the question becomes what happens to their assets? A recent example of when a receiver was sought is in a criminal case is when Bernie Madoff was incarcerated for his multi-billion dollar ponzi scheme. Although, the ponzi scheme fell apart