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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: A little help interpreting CA Civil Code 2954.10 Posted by Jerry - Ca. on August 10, 2007 at 10:50 AM In Reply to: A little help interpreting CA Civil Code 2954.10 posted by BrianH on August 09, 2007 at 7:27 PM : If I'm reading CA Civil Code section 2954.10 and am interpreting it correctly a lender is prohibited from attempting to collect a prepayment penalty when a NOD is filed due to acceleration of the note. : http://law.onecle.com/california/civil/2954.10.html : I purchased a home in May subject to a institutional 1st and a private 2nd. The home was current on payments and not in foreclosure at time of purchase. The private 2nd holder accepted the June and July payments and then filed a NOD. The demand statement we ordered via the trustee shows the beni wants his prepay. Thank you to one of the esteemed members of this site for a little encouragement, I looked up the CC and found 2954.10. I think I'm correct in reading this CC. The 2nd note holder can not charge a prepay under these circumstances. : I have a copy of the note and DOT, there is a prepayment rider executed by the original owner/borrower. This rider says nothing about acceleration or default. : The rehab is complete, we have a buyer and opened escrow last week so the clock is ticking on getting this cleared up with the note holder and trustee. : Much Thanks, : Brian XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Hello Brian: I'm not an attorney, but the way I see it is that you bought it "subject to" the existing loans. The seller/original borrower signed a separate "prepayment rider" which essentially says you owe the prepayment penalty! I may be wrong, but that's my interpretation of the situation. Jerry-Ca. Follow Ups: Re: A little help interpreting CA Civil Code 2954.10 BrianH 11:02 AM, 08/10/07 (3) Re: A little help interpreting CA Civil Code 2954.10 JK (the other JK) 1:33 PM, 08/10/07 (2) Re: A little help interpreting CA Civil Code 2954.10 BrianH 1:48 PM, 08/10/07 (1) Waiver Example: CA Civil Code 2954.10 Heidi 6:51 PM, 08/12/07 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : If I'm reading CA Civil Code section 2954.10 and am interpreting it correctly a lender is prohibited from attempting to collect a prepayment penalty when a NOD is filed due to acceleration of the note. : : http://law.onecle.com/california/civil/2954.10.html : : I purchased a home in May subject to a institutional 1st and a private 2nd. The home was current on payments and not in foreclosure at time of purchase. The private 2nd holder accepted the June and July payments and then filed a NOD. The demand statement we ordered via the trustee shows the beni wants his prepay. Thank you to one of the esteemed members of this site for a little encouragement, I looked up the CC and found 2954.10. I think I'm correct in reading this CC. The 2nd note holder can not charge a prepay under these circumstances. : : I have a copy of the note and DOT, there is a prepayment rider executed by the original owner/borrower. This rider says nothing about acceleration or default. : : The rehab is complete, we have a buyer and opened escrow last week so the clock is ticking on getting this cleared up with the note holder and trustee. : : Much Thanks, : : Brian : XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX : Hello Brian: : I'm not an attorney, but the way I see it is that you bought it "subject to" the existing loans. The seller/original borrower signed a separate "prepayment rider" which essentially says you owe the prepayment penalty! : I may be wrong, but that's my interpretation of the situation. : Jerry-Ca. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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