Firm Pressure Secures Payoff Demand and Refinance Without Litigation

When a beneficiary on a seller-financed note refused to issue a statutory payoff demand and actively obstructed our client's refinance (in order to capitalize on the property's appreciation at our client's expense), we moved quickly and aggressively. The beneficiary attempted to dodge its statutory obligations to provide the payoff demand statement by arguing that our client had defaulted under the loan, and that the Homeowner Bill of Rights did not protect our client, and therefore no payoff demand statement needed to be provided. However, HOBR has nothing to do with the payoff-demand duty owed under Civil Code § 2943, which is unconditional except for narrow exceptions that did not apply here. Moreover, our client's default had not been triggered because the beneficiary failed to send the balloon maturity notice under Civil Code § 2966 — and even if our client had been in default, the beneficiary was still obligated to provide a payoff demand statement. We sent a sharp demand, followed up with additional replies when the beneficiary's counsel doubled down, and we applied consistent pressure. Within days, the beneficiary capitulated, and the matter resolved on our terms. The result: a signed payoff demand, a recorded reconveyance, and a closed refinance — all without filing suit.  Our aggression, speed, and precise application of California lending law did the work.