Legal Question in Real Estate Law in California

Bank forcing equity line loan payoff, or foreclosure.

I was approved for an equity line in 2005 under ''stated income''. Late 2007 the bank wrote me saying they did a routine check of my 2006 IRS statement and that my monthly income were not as indicated when i applied for the loan. They have since asked a lawyer to force me into paying off the equity line ($140,000) or put up my house for sale. I have never been late with any of my loan payments for the house, and have no problem maintaining the payment. Why is the Bank doing that, and can they do that? What are my options as it is hard for me to refinance that equity line in the current market situation.


Asked on 1/13/08, 2:08 am

1 Answer from Attorneys
Allen Farshi Law Offices of Allen Farshi

Re: Bank forcing equity line loan payoff, or foreclosure.

yes they can do this, assuming you misstated your income, I would have to review the correspondence, your deed of trust and promissory note and may probably succeed in negotiating a disposition.

Call if you decide to hire an attorney.

Read more
Answered on 1/14/08, 4:54 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in California