Legal Question in Real Estate Law in California

Re: Mortgage leanders

Try to find another loan. Good luck, they'll need it. Many minor lenders are out of business or greatly reduced now. If you've actually paid anything to the lender, demand it back and sue if you don't get it.

Re: Mortgage leanders

I am sad to say, this is becoming more and more common. Funding sources have dried up for many lenders, who can no longer honor previous loan commitments. If the lender is truly on the verge of bankruptcy, which is entirely possible these days, trying to force the lender to honor a loan commitment (assuming your parents actually have a written commitment to lend) would be futile, a waste of time and money. Your best bet is to find another lender and demand the return of any fees you previously paid to the lender that has reneged.

If you really want to force the issue, you would be wise to hire an attorney to evaluate whether (a) your parents indeed have an enforceable loan commitment and have satisfied all conditions to funding, and (b) whether a judgement against the lender for breach of that commitment is likely to be collectible.

Re: Mortgage leanders

I agree with Attorney Ortega that it would be futile to pursue this company - especially given that your post indicates that the lender is in bankruptcy. If you read your loan committment, assuming you have one from the lender, you will find that they are all so non-committal that it is almost certain not to be enforceable. The lenders maintain so many contingencies in their loan approvals that it is virtually impossible to enforce a committment, and further, the bankruptcy court has the ability to set aside any contracts involving that lender, so I suggest you follow Attorney Ortega's advise and pursue a new lending source.

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