Non English speakers may have right to rescind California mortgage

25 Sep Non English speakers may have right to rescind California mortgage

Under California Civil Code Section 1632, a home loan transaction negotiated in Spanish must be documented in Spanish or the loan may be rescinded. The statute applies as well to deals done in Chinese, Tagalog, Vietnamese, or Korean.

So, every California homeowner who was solicited for a loan in a language other than English but presented with loan documents in English may have a right to unwind the transaction simply on the basis of the language switch.

My sense is that there are whole neighborhoods where loans peddled by members of one ethnic community to fellow speakers are subject to cancellation because the borrower could not read the documents that defined his obligations and risks under the loan. Goodness knows, these deals were difficult enough to understand if one spoke the language.

There is a certain irony in writing this piece in English to alert speakers of other languages to rights that may keep them from foreclosure, but it’s the only language I have. Spread the word, ye bi-lingual.

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Cathy Moran, Esq.

I'm a certified specialist in bankruptcy law (California State Bar Board of Legal Specialization) practicing in the San Francisco Bay Area for more than 30 years. In addition to practicing bankruptcy law, I train new practitioners at Bankruptcy Mastery.
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