Olilang v. Herrera
In 2009, during the midst of the Great Recession, Glenn Olilang (Olilang), like so many others, found himself in economic difficulty following the collapse of the real estate market. His house in Lakewood, California (the Property), was “upside down”—that is, he owed more to his lenders than the house was worth. As a result, he entered into a “principal reduction” program for distressed homeowners administered by Michael Herrera and Juan Herrera (collectively, the Herrera brothers or the defendants).
The defendants, or so they promised Olilang, would purchase the Property through a short sale and then resell the house back to Olilang at a lower price than he originally paid and help finance the repurchase. The defendants, however, never mentioned to Olilang that prior to repurchasing his home he would have to lease the Property back from the defendants for a period of time.
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