[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Clear
Clear
42°F
 
Calendar
Today in
S.C.V. History
February 20
1906 - L.A. County accepts Mr. H.C. Register's bid to build (Old) Newhall Jail for $2,237 [story]


Commentary by Carl Kanowsky, Esq.
| Friday, Oct 4, 2013
Carl Kanowsky, Esq.

Carl Kanowsky, Esq.

I’m no fan of Bank of America. I thought its plan to charge its customers a fee just to get their own money was a bit over the top. And In my practice, I’ve gotten numerous phone calls from homeowners bemoaning the harsh treatment they claim they’ve received from Bank of America.

But there’s a recent court decision (Nungaray v. Litton) where, amazingly, Bank of America won – and I agree with the decision.

Ruben and Dora Nungaray bought a home in Simi Valley. In 2006, the Nungarays refinanced their property and executed a promissory note for $500,000 and a deed of trust securing the obligation.

Things were going fine until 2009, when the Nungarays failed to pay the mortgage. Apparently, they hired an attorney who tried to work things out with the bank.

Feeling pressure from Washington – especially after reportedly taking a Troubled Asset Relief Program (TARP) handout of $20 billion – Bank of America participated in a program to work with folks having problems paying their mortgages. (For Bank of America, this must seem like a classic case of the shoe being on the other foot.)

So, when the Nungarays approached the bank about working out some type of modification, they initially received what seemed like a favorable response from the bank.

The couple was sent a loan workout plan, a document that perhaps gave some confusing information. For instance, it said: “If I am in compliance with this loan workout plan … and my representations in Section 1 (regarding ownership of the property and documentation of financial hardship) continue to be true in all material respects, then the lender will provide me with a loan modification agreement.”

So, great. It looked like the Nungarays were on their way to some real relief. But I guess they didn’t read the entire document, or at least they didn’t read it carefully. Now, if you’ve been reading my column for a while, what do I always say? Do not sign anything without reading and understanding it.

You see, further in the plan, the Nungarays agreed to provide some financial data to prove they were having severe economic difficulties that would warrant the loan modification.

In defense of Bank of America, it gave the Nungarays almost six months to send paycheck stubs, tax returns and other documents. For whatever reason, that did not happen.

Bank of America finally gave up and removed the hold on the foreclosure process. Unfortunately for the Nungarays, their home was foreclosed and sold to the bank in 2009.

I guess they didn’t read the plan closely enough. When the Court of Appeal considered their argument that signing up for the plan was equal to a loan modification, the court ruled the plan “is not a modification of the loan documents, and the documents will not be modified unless the Nungarays” meet all of the conditions required for modification, including the Nungarays’ receipt of a “fully executed copy of a modification agreement. The plan also required the Nungarays to submit financial information regarding their hardship and states that Litton and the bank would determine whether they qualify(ied) for the offer.”

The court sided with Bank of America’s argument that the plan was a temporary fix, not a permanent one, and that the plan told the Nungarays in no uncertain terms that this was the case.

Remember, if a contract doesn’t say something you think it should, then unless you force it in, a court later will not add it in for you later.

 

Carl Kanowsky of Kanowsky & Associates is an attorney in the Santa Clarita Valley. He can be reached by email at cjk@kanowskylaw.com. Nothing contained herein shall be or is intended to be construed as providing legal advice.

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

No Comments

    Leave a Comment


    Opinion Section Policy
    All opinions and ideas are welcome. Factually inaccurate, libelous, defamatory, profane or hateful statements are not. Your words must be your own. All commentary is subject to editing for legibility. There is no length limit, but the shorter, the better the odds of people reading it. "Local" SCV-related topics are preferred. Send commentary to: LETTERS (at) SCVNEWS.COM. Author's full name, community name, phone number and e-mail address are required. Phone numbers and e-mail addresses are not published except at author's request. Acknowledgment of submission does not guarantee publication.
    Read More From...
    RECENT COMMENTARY
    Thursday, Feb 15, 2018
    There was broad public support for the Desert Renewable Energy Conservation Plan, which struck a careful balance between lands available for large-scale renewable energy development and the environment. Now the federal government is rethinking it - putting the important and much-needed protections at risk.
    Tuesday, Feb 13, 2018
    You can prevent vision loss by finding and treating problems early. Medicare covers a glaucoma test once every 12 months for people at high risk for glaucoma
    Wednesday, Feb 7, 2018
    Sierra Club Angeles Chapter SCV Group Chair Sandra Cattell urges Santa Clarita Valley residents to contact their congressional representatives to push legislation to kill the Cemex mining project in Soledad Canyon.
    Friday, Feb 2, 2018
    Santa Clarita City Manager Ken Striplin highlights the city's customer service efforts in his message for February 2018.
    Friday, Feb 2, 2018
    If the Department of the Interior is successful in destroying this national monument, the next one slated for destruction is Grand Staircase-Escalante, then Cascade-Siskiyou National Monument along the California-Oregon border.
    Friday, Feb 2, 2018
    Here’s what is happening on February 24: a rally to organize students in the Los Angeles Unified School District "against" the highly effective Los Angeles School Police Department.

    Latest Additions to SCVNews.com
    1906 - L.A. County accepts Mr. H.C. Register's bid to build (Old) Newhall Jail for $2,237 [story]
    NextSCV, newly rebranded from SCV Emerging Leaders, will host a behind-the-scenes tour of the Princess Cruises world headquarters in Valencia, followed by a mixer at The Dudes’ Brewery, on Wednesday, February 28.
    Feb. 28: NextSCV Behind-the-Scenes Tour of Princess Cruises HQ
    The Henry Mayo Newhall Hospital Foundation has added three new members to the board of directors -- Don Kimball, community president at FivePoint; Tracy Lawrence, MD, director of Emergency Services, Henry Mayo Newhall Hospital; and Robert Stern, CPA, Stern, Kory, Morgan & Sreden.
    Henry Mayo Newhall Hospital Foundation Adds 3 to Board
    Hollywood Boulevard will be closed for the Oscars between Highland Avenue and Orange Drive from 10 p.m. on Sunday, February 25 to 6 a.m. on Wednesday, March 7.
    Hollywood Blvd. Closed for Oscars Feb. 25 to March 7
    Westmont scored a 54-41 home win over The Master's University women's basketball team Saturday night, as the Mustangs scored the fewest points in a game this season, shooting just 31 percent from the floor.
    The Master’s Can’t Find Groove in Santa Barbara
    The TMU Mustangs rallied from a deficit late Saturday afternoon to beat Hope International 4-3 in the nightcap, completing a series and a doubleheader sweep of the No. 8 Royals.
    Mustangs’ 4-3 Comeback Sweeps Royals in Closer
    Josh Robison slugged a go-ahead, two-run homer in the eighth inning and No. 14 The Master's University rallied from a three-run deficit to beat No. 8 Hope International 7-6 in the first game of a doubleheader Saturday afternoon at Lou Herwaldt Stadium.
    Robison Rallies Mustangs Past Royals in Opener
    Farmers Insurance agent Jon Albert will host a ribbon-cutting ceremony to celebrate the grand opening of his new Santa Clarita office on Tuesday, February 20 from 5 p.m. to 8 p.m.
    Feb. 20: New Farmers Insurance Agent Hosts Grand Opening
    The Mustangs opened the second half of their 101-82 win at Westmont College on Saturday with a flurry of steals and blocks and buckets, which helped TMU claim at least a share of the first GSAC title in program history.
    Mustangs Claim Share of 1st GSAC Title in Program History
    CSUN's fifth annual Maurice Amado Foundation Lecture in Jewish Ethics will feature respected scholar Aaron J. Hahn Tapper, who will examine issues surrounding reconciliation and forgiveness in his talk at Valley Beth Shalom Synagogue in Encino on Wednesday, March 14 starting at 7:30 p.m.
    March 14: CSUN Amado Lecture to Explore Forgiving the Unforgivable
    A federal grand jury on Friday indicted a 32-year-old Texas man accused of carrying out a five-day, 2 million-email attack on the Los Angeles County Superior Courts computer system in July 2017.
    Feds Indict Texas Man in LA County Court Email Hack
    The Academy of Motion Picture Arts and Sciences will host live Oscars viewing parties in New York and London for its members and invited film industry guests on Oscar Sunday, March 4.
    March 4: Academy to Celebrate Oscar Night in New York, London
    College of the Canyons' baseball team beat Chaffey College 12-9 in a wild game on Saturday when the home team scored eight runs in the 7th to gain the win and improve to 7-4.
    College of the Canyons Outruns Chaffey College 12-9
    The next Canyon Country Advisory Committee meeting at the Mint Canyon Moose Lodge includes a meet-and-greet with 25th District Congressional candidate Michael Masterman-Smith on Wednesday, February 21, from 7 p.m. to 9 p.m.
    Feb. 21: Canyon Country Advisory Committee Meeting
    "NCIS" producer-writer Scott Williams has been added to the lineup of speakers at the 2018 Economic Outlook Conference hosted by the SCV Economic Development Corporation and COC at TPC Valencia on March 8 from 2 p.m. to 5 p.m.
    March 8: ‘NCIS’ Producer Joins 2018 SCV Economic Outlook Panel
    The William S. Hart Union High School District's Career & College Readiness Department is celebrating Career Education Month in February by providing students a variety of pathways to success.
    Hart District Celebrates Career Education Month
    Arroyo Seco Junior High School and Saugus High School have partnered to introduce Career Pathways to students, with automotive technology the focus of the next panel on Friday, February 23.
    Arroyo Seco, Saugus High Team for Career Pathways Panels
    Los Angeles County's Interim Health Officer has issued a Cold Weather Alert for the Santa Clarita Valley through Wednesday night due to the National Weather Service’s forecast for wind chill temperatures below 32 degrees Fahrenheit.
    Cold Weather Alert Chills SCV Through Wednesday
    1803 - Indian family members removed from Caamulus (Camulos) village, Piru area, are baptized at San Fernando Mission [record]
    1955 - Actor and nightclub owner Ace Cain incorporates the Rocky Springs Country Club in Sand Canyon [story]
    1949 - Short-lived oil drilling operation on Newhall's Arcadia Street ends [story]
    The next meeting of the Los Angeles County Board of Supervisors is set for Tuesday, February 20, starting at 1 p.m.
    Feb. 20: LA County Board of Supervisors Meeting
    Little, Brown Books recently published CalArts alum Vashti Harrison's (Film/Video MFA 14) debut illustrated book, "Little Leaders: Bold Women in Black History."
    Vashti Harrison Talks ‘Little Leaders: Bold Women in Black History’
    UCLA's Hammer Museum has announced the 32 artists including six CalArts alumni who will participate in "Made in L.A. 2018," the fourth edition of the museum's biennial exhibition, which runs June 3 to Sept. 2 at the Westwood museum.
    6 CalArtians Among Artists Selected for ‘Made in L.A. 2018’
    The Isaura String Quartet will present an evening of music by CalArtians at Human Resources LA in Downtown Los Angeles on Sunday, February 18 starting at 8 p.m.
    Feb. 18: Isaura String Quartet to Perform at Human Resources LA
    Two films directed by alumni of California Institute of the Arts' legendary Character Animation program, "Coco" and "The Boss Baby," are nominated for "Best Animated Feature" Academy Awards.
    Oscar Buzz: Will 2018 Bring Oscar No. 11 to a CalArts Animator?
    Crime Prevention deputies from the Santa Clarita Valley Sheriff's Station, assisted by Crime Impact Team deputies, conducted checks on probationers at six different locations on Thursday but made no arrests.
    SCV Deputies’ Latest Probation Check Nets No Arrests
    Artist Bob Hernandez will give a charcoal/pastel inspirational talk at the Monday, Feb. 19 meeting of the Santa Clarita Artists Association at Barnes & Noble in Valencia starting at 6:30 p.m.
    Feb. 19: Bob Hernandez Charcoal, Pastel Demo at Barnes and Noble
    U.S. Air Force Airman Taylor M. Lingscheit has graduated from basic military training at Joint Base San Antonio-Lackland, San Antonio, Texas.
    West Ranch Alum Taylor Lingscheit Graduates USAF Basic Training
    The city of Santa Clarita, County Supervisor Kathryn Barger, the Hart District and the Los Angeles Conservation Corps celebrated the growth and continued success of the school district’s recycling program with a media event at Valencia High School Thursday.
    Santa Clarita, LA County Celebrate School Recycling Push
    The Master's University women's basketball team hopes it finds its offensive mojo by Saturday evening when it takes on No. 4 Westmont College in Santa Barbara.
    Master’s Seeks Offensive Mojo Ahead of Westmont Showdown
    The Master's College Mustangs men's basketball team (25-1) can lock in at least a share of the program's first-ever GSAC regular-season title with a win at No. 8 Westmont College on Saturday.
    Mustangs Could Clinch GSAC Title Saturday in Santa Barbara
    College of the Canyons' baseball team tasted both victory and defeat on Wednesday, dropping a 6-5 extra innings decision to Cerritos College in a make-up game and following with a 4-3 win in the regularly scheduled contest.
    Cougars Hold On for 4-3 Win Over Cerritos College
    With a hard-fought 81-77 victory over visiting Bakersfield College on Wednesday night in the Cougar Cage, College of the Canyons' men's basketball team moved into the conference top spot one win away from winning a conference championship.
    Cougars Claw Bakersfield 81-77, Move Into Conference Top Spot
    College of the Canyons women's basketball team won its eighth straight game Wednesday night in the Cougar Cage, knocking off conference rival Bakersfield College 88-60 and clinching at least a share of WSC South Division championship.
    COC Women’s Hoops Team Wins 8th Straight, Share of WSC Title
    The Los Angeles County Community Development Commission has earmarked $1.5 million in Affordable Housing Trust Funds for construction and financing of Six Four Nine Lofts, a supportive housing development for homeless military veterans and special-needs households on L.A.'s Skid Row.
    LA County, City Team to House Homeless Veterans, Special Needs Households