Foreclosure

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

Bid-rigging at foreclosure sales is an antitrust violation. Read More