A successor owner of the property is entitled to reinstate a defaulted deed of trust under Civ. Code 2924c even if the successor owner is not a party to the defaulted loan and deed of trust and does not assume any obligation under that loan and deed of trust. Here, plaintiff bought the property at a foreclosure sale held by… Read More
Particularly as amended in 2019, Civ. Code 2923.7 requires a loan servicer to appoint a SPOC for each borrower who seeks a foreclosure alternative. The borrower need not specifically request a SPOC in order to trigger the statute. Interpreting Civ. Code 2924.12, the decision holds that for post-foreclosure damages purposes, the court must analyze harm in three steps. First, did… Read More
The Supreme Court holds that lenders and loan servicers do not owe borrowers a duty of care in handling their loan modification applications. Lender and borrower are in privity of contract, and the economic loss rule prevents recovery for purely economic loss based on negligence between contracting parties. The Biakanja factors apply only to parties not in privity of contract. … Read More
Borrower's fourth mortgage foreclosure delay suit was properly dismissed as barred by the res judicata effect of the prior three judgments against her, two of which had been affirmed on appeal. All the actions involved the same cause of action as they all asserted a violation of borrower's ownership interest in the property that was subject to her deed of… Read More
Defendant initially violated HBOR by refusing to consider plaintiff's loan modification application because only his deceased wife was the borrower on the loan, but defendant cured its violation after suit was filed by canceling the pending foreclosure, accepting and review plaintiff's loan modification application, and offering him a trial payment plan intended to lead to a loan modification. Thinking he… Read More
Robin held a senior deed of trust. Crowell held a junior lien on the same property. Robin commenced a judicial foreclosure action against the debtor and the property but failed to name and serve Crowell as a defendnat in the suit. Some years after the judicial foreclosure sale, Robin brought this quiet title action against Crowell to "complete" the judicial… Read More
Under Civ. Code 2924.15, HBOR's provisions apply only to owner-occupied properties. But the section goes on to define "owner-occupied" as property that is the borrower's principal residence and security for a loan made for consumer purposes. This decision reads the definition literally, holding that so long as the property is the borrower's principal residence, HBOR's provisions apply even if the… Read More
Plaintiff stated a viable claim for unjust enrichment after it contracted with a property owner to appeal property tax assessments in return for 30% of any resulting refund, but the property was foreclosed upon by defendant before the tax refund came through. Read More
A homeowner should have been allowed to amend his complaint to allege that the party foreclosing on his house lacked any interest in his loan since that the prior owner of the loan had already assigned it to someone else before executing the assignment to the foreclosing party. Read More
The catch-all federal four-year statute of limitations applies to violations of the foreclosure prohibitions in the Servicemembers Civil Relief Act. Read More
This California case is at the intersection of interpleader and foreclosure litigation. A foreclosure trustee interpleaded surplus funds following a foreclosure sale that was challenged by the borrower in a wrongful foreclosure action. It shouldn’t have. An interpleader lies only where the holder of third-party funds may face multiple liabilities, but Civil Code section 2924k sets forth exactly how surplus… Read More
A good faith purchaser of the contents of a self-storage unit takes the contents free and clear of the unit lessee’s claims, even if the lessor had violated the Storage Facility Act by failing to enter into a written lease with the lessee. Read More
Interpleader cross-complaint filed by the trustee of a deed of trust was correctly dismissed because there was no question that surplus proceeds from a foreclosure sale belonged to the trustor, notwithstanding the trustor’s ongoing wrongful foreclosure lawsuit. Read More
Sanctions were improperly awarded under CCP 128.7 since plaintiffs’ suit was not frivolous; they had a nonfrivolous argument that their agreement to settle a prior action did not release the defendants in this follow-on suit. Read More
The Financial Institutions Reform, Recovery, and Enforcement Act (“FIRREA”) preempts a Nevada law that limited deficiency judgments on foreclosure to the amount by which the price the owner paid to acquire the loan exceeded the foreclosure sale price. Read More
If a tenant’s leasehold interest is foreclosed upon, the purchaser at the foreclosure sale succeeds, as assignee, to the tenant's right to occupy the premises and to all covenants of the lease that run with the land, but not to the lease contract itself absent express assumption. Read More
Coverage under a standard California lender’s policy of title insurance terminates once the property is sold, without warranty, at a foreclosure sale. Read More
A void default judgment, obtained without proper service on the defendant, cannot be the foundation of a valid claim of title to property, so the secured lender against whom the default judgment was entered prevails over a bona fide purchaser from the plaintiff. Read More
Given the clear chain of title leading to deed of trust and one defendant’s status as its trustee, foreclosing defendants were justified in their good faith belief in their right to foreclose; so recording of foreclosure-related documents was privileged activity, and no viable cause of action could arise therefrom. Read More
