Legal Question in Real Estate Law in California

I have an equipment lease and a commercial lease. The Bank foreclosed on the property and we have a separate lease for the equipment. The bank told the tenant to pay them everything since they own the building and everything in it. They did not file any documents that would repo the equipment since we own the equipment. Where do we stand?


Asked on 1/12/12, 11:33 am

1 Answer from Attorneys
Anthony Roach Law Office of Anthony A. Roach

You should have an attorney review the lease agreement, the deed of trust, and any other documents that you signed.

These types of loans are called mixed collateral loans. If the bank foreclosed nonjudicially, by exercising the power of sale in a deed of trust, they are not prohibited from pursuing other security, such as personal property security.

Determining whether the foreclosure on the personal property - the equipment that also formed the security - was proper, is going to depend on a review of the documents that you signed.

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Answered on 1/13/12, 8:08 am


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