Del Mar - Encinitas - La Jolla - coastal San Diego real estate

Information required to be disclosed:

In the purchase of a home, the bank or arranger or credit is required to make the following disclosures to both the purchaser and credit vendor by Section 2963 of the California Civil Code:

     (a) An identification of the note or other credit documents or secu­rity documents and of the property which is the security for the mortgage. 

(b) A description of the terms of the promissory note or other credit documents or or a copy of the note or other credit documents. 

(c) The principal terms and conditions of each recorded encum­brance and lien upon the property which is or will be senior to the financ­ing being arranged, including the original balance, the current balance, the periodic payment, any balloon payment, the interest rate (and any provisions with respect to variations in the interest rate), the maturity date, and whether or not there is any current default in payment on that encum­brance.

    (d) A warning that, if refinancing would be required as a result of lack of full amortization under the terms of any existing or proposed loans, such refinancing might be difficult or impossible in the conventional mort­gage marketplace.

    (e) If negative amortization is possible as a result of any variable or adjustable rate financing being arranged a clear disclosure of this fact and an explanation of its potential effect.

     (f) In the event that the financing involves an all inclusive trust deed, the disclosure shall indicate whether the credit or security docu­ments specify who is liable for payment or responsible for defense in the case of an attempted acceleration by a lender or other obligee under a prior encumbrance, and whether or not the credit or security documents specify the responsibilities and rights of the parties in the event of a loan prepayment respecting a prior encumbrance which may result in a re­quirement for refinancing, a prepayment penalty, or a prepayment dis­count, and, if such specification occurs, a recital of the provisions which apply. 

(g) If the financing being arranged or any of the financing repre­sented by a prior encumbrance could result in a balloon payment, or in a right in the lender or other obligee under such financing to require a pre­payment of the principal balance at or after a stipulated date, or upon the occurrence of a stipulated event, a disclosure of the date and amount of any balloon payment or the amount which would be due upon the exer­cise of such right by the lender or obligee, and a statement that there is no assurance that new financing or loan extension will be available at the time of such occurrence. 

(h) If the financing being arranged involves an all inclusive trust deed or real property sales contract, a disclosure of the party to whom payments will be made and who will be responsible for remitting these funds to payees under prior encumbrances and vendors under this trans­action a a warning that, if that person is not a neutral third party, the parties may wish to agree to have a neutral third party designated for these purposes. 

(I) A disclosure on the identity, occupation, employment, income, and credit data about the prospective purchaser, as represented to the ar­ranger by the prospective purchaser, or, specifically, that no representa­tion as to the credit-worthiness of the specific prospective purchaser is made by the arranger. A warning should also be expressed that Section

(j) A statement that

loss payee clauses have been added to property insurance pro­tecting the vendor, or that instructions have been or will be directed to the es­crow holder, if any, in the transaction or the

appropriate insurance carriers for addition of such loss payee clauses, or a statement that, if such provisions have not been made, that the vendor should consider protecting himself or herself by securing such clauses. 

(k) A statement that a request for notice of default under Section 2924b has been recorded, or that, if it has not been recorded, the credit vendor should consider recording a request for notice of default. 

(1) That a policy of title insurance has been obtained or will be obtained and be furnished to the credit vendor and purchaser, insuring the respective interests of the vendor and purchaser, or that the vendor and purchaser individually should consider obtaining a policy of title insurance. 

(m) That a tax service has been arranged to report to the credit vendor whether property taxes have been paid on the property, and who will be responsible for the continued retention and compensation of tax service; or that the vendor should otherwise assure for himself or herself that the taxes on the property have been paid. 

(n) A disclosure whether the security documents on the financing being arranged have been or will be recorded pursuant to Section 27280 of the Government Code or a statement that the security of the credit vendor may be subject to intervening liens or judgments which may occur after the note is executed and before any resort to security occurs if the security documents are not recorded. 

(o) If the purchaser is to receive any cash from the proceeds of the transaction, a statement of that fact, the amount, the source of the funds, and the purpose of the disbursement as represented by the purchaser. 

(p) A statement that a request for notice of delinquency under Sec­tion 2924e has been made, or that, if it has not been made, the credit ven­dor should consider making a request for a notice of delinquency.

580b of the Code of Civil Proce­dure may limit any recovery by the credit vendor to the net proceeds of the sale of the security property in the event of a foreclosure.