Legal Question in Real Estate Law in California

Re: lender closed it's doors

It depends on how lucky you feel, and upon your situation. It is very possible, even likely, that a proper assignment will not be done.

Eventually, someone will probably demand payment from you, but unless they are able to prove they are entitled to collect on the note, you will have no legal obligation to pay them anything.

On the downside you run the risk that your house could be foreclosed upon, but if you have no equity anyway, as most people don't these days, then you have nothing to lose, except that you could be sued for a deficiency.

At any rate I do not think it is prudent for you to send payments to a business that you know is shut down and to an address that you know is vacated. I would recommend putting the money in a separate bank account until you are notified of a new address or business to send the payments to.

Re: lender closed it's doors

Sorry to inform you that the promissory note you signed is a negotiable instrument, and soon will, if it it hasn't already, end up in the hands of another "holder in due course" who will have the same rights against you, and the same access to the collateral (deed of trust) that the original lender enjoyed. The mail is also no doubt being forwarded somewhere. Stopping payment will just get you in some kind of trouble. You'll probably receive a notice of a new payment address, or your next monthly statement will have a payment coupon directed to a different P. O. Box.

Re: lender closed it's doors

Nice try, but you still must make your payment as before.