Foreclosure forbearance must be signed

In the case of Secrest v. Security Nat. Mortg. Loan Trust (Cal.App. 4 Dist.), a foreclosure forbearance agreement drafted but not signed by the creditor on a deed of trust was unenforceable under the statute of frauds. The statute of frauds generally requires that a conveyance of real estate be signed by the party against which it is to be enforced. The agreement in this case attempted to modify the note and deed of trust by substituting a new monthly payment for the monthly payment required under the note, and altering the lender's ability to foreclose. Even if the borrowers fully performed their obligations under the agreement by wire-transferring a $13,422.51 downpayment, such performance did not prevent the new transferee of the note and deed of trust from asserting the statute of frauds defense. The borrowers had an adequate remedy at law to vindicate any right to recover the $13,422.51.