Thomas R. Lloyd owned and occupied his home in San Francisco, and fell behind on his mortgage payments. In an effort to avoid foreclosure, Lloyd sold his home to equity buyer Jeffrey E. Hoffman and simultaneously signed a leaseback/lease-option agreement under which Lloyd would continue to live in and make lease payments on his home, and for two years would have the right to purchase the home back. The sales contract did not notify Lloyd of his rights under California's Home Equity Sales Contract Act ("HESCA"), California Civil Code Section 1695, et seq., which was applicable because his home was in foreclosure at the time of the sale. HESCA is a statute that protects owners of homes in foreclosure, in part by requiring that equity purchasers inform distressed home...
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