In Yvanova v. New Century Mortgage Corp the California Supreme Court held that in a case where a homeowner alleges a nonjudicial foreclosure sale was wrongful because of a void assignment, the homeowner has standing to sue for wrongful foreclosure.
In Sciarratta v. U.S. Bank National Association the question of “prejudice” left open in Yvanova was decided. Where a homeowner alleges foreclosure by one with no right to do so, do such allegations alone establish the requisite prejudice or harm necessary to state a cause of action for wrongful foreclosure? Or instead, to adequately plead prejudice, does the plaintiff-homeowner have to allege the wrongful foreclosure interfered with his or her ability to pay on the debt, or lead to a foreclosure that would not have otherwise occurred? Continue reading
The doctrine of equitable subrogation allows a court to give effect to the intentions of the parties with respect to lien priority in secured real estate transactions. The doctrine can be stated as follows: A lender who advances money to pay off an encumbrance on real property, at the request of the owner or holder of the encumbrance, with the understanding that the advance is to be secured by a first priority lien: 1) Is not a volunteer; 2) In the event the new security is not a first lien, the holder will be subrogated to the rights of the prior encumbrancer, unless the new encumbrancer is charged with “culpable and inexcusable neglect” or the superior or equal equities of others would be prejudiced. Continue reading
Once again a Court of Appeals affirms the trial court’s ruling sustaining a demurrer without leave to amend of a homeowners’ complaint which challenged the MERS registration system and the assignment of the underlying note by MERS. Continue reading