Legal Question in Real Estate Law in California

Re: Mortgage Lender refuses to Submit Pay-Off

The whole subject of mortgage payoff demands has many ins and outs, and the best advice I can give you is to locate Civil Code section 2944 and read it through yourself very carefully, applying the facts of your situation to each of the many "but if" conditions.

I think the penalty provision is in subsection 2944(e)(4), and says failure to respond within 21 days will result in a $300 forfeiture by the unresponsive beneficiary and in addition liability for the requesting party's consequential damages.

I note, however, that a loan beneficiary has no duty to provide a pay-off if the property is in foreclosure (by trustee sale or judicial process) and a notice of date of sale has been issued. As I say, there are other twists and turns.