Legal Question in Real Estate Law in California

Junior lien holder suing for damage

I am being sued by the junior lienholder for property damage. I was not on the loan but did have a 25% equity position recorded. The property went into forclosure and the second lien was wiped out. The second was a private second from the seller of the property. They are claiming the damage to the property caused the value to decline in turn her second was worthless. The property sustained damage from a broken water pipe, however, the second received a settlement from the insurance co. for 34K. They are suing for 140K, the loss of the note, 100K, plus mental duress, the suit claims intent to damage the property. Does she have any basis to sue for such a thing? The damage occured prior to me takng the 25% ownership. She was re-imbursed for the damage. The loss in value was mainly because of a soft real estate market. Seems unrealistic that she might have a case. Any advise would be helpful. The MSC ended after 1 year of meetings and a trial date has been set. I am representing myself however now may hae to reconsider.


Asked on 8/15/08, 5:53 pm

1 Answer from Attorneys
Daniel Bakondi The Law Office of Daniel Bakondi

Re: Junior lien holder suing for damage

Yes, you should have an attorney right away.

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Answered on 8/15/08, 6:05 pm


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