Is city liable to mortgage lender for building demolition?

Judge decides in Southern California case

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In July 2000, the city of Long Beach, Calif., recorded a "Declaration of Substandard Property" against a four-unit apartment building. The building inspector estimated it would cost $20,000 to bring the property into building code compliance and repair deficiencies in the vacant building. On Dec. 13, 2000, the property was sold to Aztec Financial at a foreclosure sale. In February 2001, Aztec sold the property to Rahim Pashmaki, who obtained a $247,500 mortgage from Daaz Financial Services, which later assigned the loan to D & M Financial Corp. Purchase Bob Bruss reports online. Because the necessary repairs were not made to the building, the city sent several intent-to-demolish notices to new owner Pashmaki, but not to the mortgage lender, D & M Financial. On Friday, Aug. 10, 2001, the city mailed a "48-Hour Notice of Intent to Demolish" to Pashmaki and a copy to D & M Financial Corp. in Belleville, NJ. On Monday, Aug. 13, 2001, an employee of D & M phoned city buildin...