Legal Question in Real Estate Law in California

I refinanced my mortgage, but the new lender didn't close out the original line of credit. Are there snt legal ramifications on us for this.


Asked on 6/25/12, 8:41 pm

1 Answer from Attorneys

Anthony Roach Law Office of Anthony A. Roach

It depends on how you refinanced. Some lenders will have a new deed of trust with a new promissory note. Others will simply have a new note that supersedes the original note. I'd have to review the relevant paperwork to be sure. Keep in mind that most deeds of trust contain anaconda clauses or dragnet clauses that make them security not only for the loan at issue, but also preexisting or future debts. Courts have upheld this, including in situations where there was a line of credit.

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Answered on 6/26/12, 3:00 pm


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