Legal Question in Real Estate Law in California

Right to take out loan on land.

My husband and I, (A), are on title with another person, (B). One of B's relatives, (C), also received title to the property by altering the deeds to the property. I received a guaranteed title insurance policy which shows interest as 61% to (B), 29% to (A),& 10% to (C). My questions are somewhat complicated, but nonetheless. I need to know what laws pertain to the rights of the co-tenants to obtain loans against the property. The current situation is owner (C) has obtained a $260k loan against the property. He did so by misrepresenting his ownership. He altered the documents to read as if he owned 100% of the property.

Owner C is now in foreclosure on the loan, and I found out by going to the county recorders office to look up the property liens. What can I do. Can I do some kind of lis-pending action to stop the foreclosure, & bring charges against owner (C)?

The other thing is I do not understand how the bank loan owner (C) any money at all when the title policy shows that he only has 10%. I am also concerned about the other liens that owner (C) has incurred against the property.

What can I do?

Thanks for your help.


Asked on 9/07/06, 5:17 pm

1 Answer from Attorneys
Roy Hoffman Law Offices of Roy A. Hoffman

Re: Right to take out loan on land.

You are going to need to sue party (C) as well as the lender. You should take all documents you have in your possession to an attorney for review immediately. In most, if not all cases, you will need to bring the loan current in order to stop foreclosure proceedings.

If you do not immeditaely take steps to resolve this situation, you will lose the property.

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Answered on 9/07/06, 5:47 pm


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