California courts have not been sympathetic to homeowners facing foreclosure. As long as lenders and their appointed trustees strictly follow the statutory non-judicial foreclosure procedure, foreclosure sales are final and shell-shocked homeowners have little recourse.

    Demurrers to causes of action filed by homeowners who have lost their homes are routinely sustained without leave: MERS has standing; there is no requirement to “show me the note”; homeowners have no enforceable rights under the federal Home Affordable Modification Program (HAMP); and, with respect to cancellation of deed claims, tender is required.

   However, the recent non-published case of Lee v. JPMorgan Chase Bank highlights a cause of action that may be available to some foreclosed homeowners: negligent misrepresentation. Continue reading →