Article 7. Successors In Interest In Loans of California Financial Code >> Division 2. >> Chapter 6. >> Article 7.
In the case of any investment made by an association in a
real estate loan, in the event all or part of the ownership of the
real estate security becomes vested in a person other than the party
or parties originally executing the security instruments and if there
is not an agreement in writing to the contrary, an association may,
without notice to the party or parties, deal with a successor in
interest to the mortgage and debt in the same manner as with the
original party or parties, and may forbear to sue or may extend time
for payment of or otherwise modify the terms of the debt, without
discharging or in any way affecting the original liability of the
party or parties or their debt.