The Region - News from April 1, 1987

An Oakland-based bank that won the right to foreclose on homes of residents in Orange and Los Angeles counties who claimed that they were tricked into buying solar heating equipment has offered to negotiate with homeowners who are in arrears. Central Bank, in letters mailed to more than 400 customers on March 24, pledged not to foreclose until customers have an opportunity to bring their loans into current status. The homeowners claimed in an Orange County Superior Court suit that they did not realize that they were risking their homes to secure loans to pay for solar heating equipment and sued dozens of solar firms and banks last summer, complaining of deceptive sales practices and solar equipment that did not work. But a judge last month refused to halt threatened foreclosures, ruling that the bank was not responsible for the allegedly deceptive practices of solar equipment contractors and salesmen.