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California Law on Priority of Purchase-Money Loan vis-à-vis Reattaching Junior Lien

Jun 19, 2003 | By: Michael J. Hassen

California Appellate Court Resolves Matter of First Impression Regarding Reattaching Liens Under California law, a wiped out junior lien reattaches if the trustor repurchases the real property that secured the debt. The question is, if the trustor obtains a purchase-money loan to buy the property, does the reattaching lien have priority over the purchase-money loan? This was a matter of first impression when addressed by the court in DMC, Inc. v.

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About the Author

Michael J. Hassen's litigation practice spans almost 30 years and emphasizes general business and commercial litigation, including class action defense and unfair business practice representative actions (section 17200).

He represents lenders in all facets of lender litigation, ranging from class actions and unfair business practices based on alleged "predatory" lending and RESPA violations or alleged violations of the Fair Debt Collection Practices Act, to claims alleging elder abuse or challenging the validity or priority of liens.

Michael also has significant experience in business torts such as misappropriation of trade secrets and raiding of corporate employees, ADA claims, and all phases of commercial and real estate finance, construction finance and construction defect claims.

He is experienced in appellate matters, having had primary responsibility for preparing more than 100 appellate briefs.

Contact Michael at:

mjhassen@reallaw.us