California Court holds the Bank has Duty to Act in Good Faith in the Loan Modification Process

P's home was in foreclosure. 13 days before Bank foreclosed on P’s home, Bank falsely represented in writing to P that no foreclosure sale would occur as long as the matter was under review process. P sued bank. Court of appeal held that the Bank had a duty to act in good faith, the Forbearance Agreement contained an implied covenant of good faith and fair dealing.
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