Little v. Harbor Pacific Mortgage Investors No. 79B

Opinion

SONENSHINE, J.

—In July of 1980, Harbor Pacific Mortgage Investors No. 79B (Harbor) loaned James and Phyllis Little $28,700. The debt was

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evidenced by a note requiring monthly interest payments of $435.50 for 23 months. A balloon payment of principal and interest in the amount of $29,135.50 was due in two years. A late payment of $25.83 accrued for each payment delinquent for 10 days. The debt was secured by a second lien on the Littles’ real property. The first lien deed of trust was held by Home Federal Savings and Loan Association.

The Littles made only the first payment. In February of 1981, Harbor filed a notice of default and election to sell under deed of trust.

1

The Littles were put on notice that as of February 4, 1981, the amount of the default was $2,598.45.

On April 20, the Littles asked Harbor what amount was necessary to cure the default. Before Harbor advised the Littles as to the exact amount owing it discovered the Littles were also delinquent on the first mortgage. Harbor paid $6,086.48 to Home Savings, bringing the Littles’ obligation current.

2

Thereafter on either the 22d or 23d of April, Harbor told the Littles the total amount due was $10,319.85.

3

A week later, the Littles, through their attorney, attempted to tender $4,177.54 to Harbor. It rejected the offer insisting, under California Civil Code section 2924c, it was entitled to the full $10,319.85.

4

Prior to the expiration of the reinstatement period, the Littles tendered $10,319.85 and the deed of trust was reinstated.

But the Littles were unhappy. In October of 1981 they filed the underlying complaint against Harbor. They alleged Harbor improperly refused the tender of $4,177.54, thereby breaching their contract.