Legal Question in Real Estate Law in California

My father has rental properties that I am managing for him since he has dementia and cannot do it himself. Like a lot of other property owners, all of his properties are upside-down. The cost of his housing and care have been very expensive. I have been trying to keep him in an assisted living memory care facility for as long as possible basically slowly liquidating his assets to pay for it. We sold a property which has kept him going this year. Also, his worst property (worth $90K but owes 129K), I stopped paying on a year ago. We still have a tenant paying rent. I sent the bank all of the information they asked for to possibly get loan modification. I am my dad's only power of attorney. I am also a transsexual. I only mention this because it has direct bearing on the situation. Every time the bank called, I identified myself as Jennifer - my legal name. I have a man's voice so they wouldn't accept it. Finally, it got to where they would just hang up on me when they called. I would have liked to work out something with them but after the way I have been treated for the last year, I just assume let it go into foreclosure. This will probably be the outcome anyway. My question has to do with something I saw on TV awhile ago. There was a lawyer who sought out people who were being foreclosed on and helped them out by combing through their purchase agreements looking for a way to void it. Somehow, the buyers were able to keep the property after the problems were found. If that is actually possible, I'd like to know how to go about it for this property.

Asked on 8/19/10, 9:15 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

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Voiding the purchase agreements? I don't see that helping a bit - that would mean you've been illegally rent skimming on someone else's buildings. Perhaps you meant voiding the loans. I doubt that's gonna work, either. There's just too much recorded proof that X gave Y some money, and it was to be repaid, and that Property Z was intended as collateral. There is a cottage industry within the legal profession, suing lenders for defects in truth-in-lending compliance, giving foreign-language transations of the documents to borrowers, etc., and while there are no doubt lots of mistakes and corner-cutting, I would say this is grasping at straws.

If you have several loans with one bank, I would suggest trying to work with someone in person, rather than over the phone, and have your power-of-attorney credentials with you.

Ultimately, if they won't work with you on reasonable requests, document everything and be prepared to defend - or sue - on grounds of unlawful discrimination.

Keep in mind, however, that you and your dad are not the only ones who have small empires of income property that was accumulated or cash-out refinanced in the boom five years ago, and are now experiencing reverses including seeing the whole thing unravel.

Answered on 8/24/10, 9:39 pm

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