Wrongful Foreclosure: Prejudice Results from the Foreclosure of a Void Assignment

  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

Wrongful Foreclosure: Borrowers May Challenge Void Assignments of Deeds of Trust

  In Glaski v. Bank of America, the appellate court held a borrower may base a wrongful foreclosure claim on allegations that the foreclosing party acted without authority because the assignment by which it purportedly became beneficiary under the deed of trust was not merely voidable but void. Subsequent appellate court opinions, for a variety of reasons, refused to follow Glaski.

  In Yvanova v. New Century Mortgage the California Supreme Court considered the narrow question, considered in Glaski, of whether the borrower on a home loan secured by a deed of trust may base an action for wrongful foreclosure on allegations a purported assignment of the note and deed of trust to the foreclosing party bore defects rendering the assignment void. Continue reading

Wrongful Foreclosure: Ineffective Securitization? So What?

  The courthouse doors are now routinely slammed shut against homeowners who allege wrongful foreclosure based upon alleged defects in securitization trusts, despite the holding in Glaski v. Bank of America. Continue reading

Wrongful Foreclosure: 5 Insufficient Factual Allegations

  Rossberg v. Bank of America is a case about factual allegations which will not win the day in a suit to enjoin a nonjudicial foreclosure sale. The Rossbergs attempted to allege defects sufficient to invalidate the recorded Notice of Default and sought to enjoin the foreclosure sale of their residence. The take-a-ways: Continue reading

Wrongful Foreclosure; Temporary Loan Modification; Void Sale: Tender Not Required

  In Chavez v. Indymac Mortgage Services the court allowed a wrongful foreclosure case to proceed where the borrower complied with all the terms of the temporary loan modification and timely signed and returned the loan modification agreement. Continue reading

Borrower May Challenge Securitized Trust’s Ownership

  The Fifth Appellate District holds in Glaski v. Bank of America that a borrower may challenge a securitized trust’s claim to ownership of the deed of trust by alleging “the attempts to transfer the deed of trust to the securitized trust (which was formed under New York law) occurred after the trust’s closing date. Transfers that violate the terms of the trust instrument are void under New York law, and borrowers have standing to challenge void assignments of their loans even though they are not a party to, or a third party beneficiary of, the assignment agreement.” Continue reading

Errors Independent Foreclosure Review Will Attempt to Uncover

   I have posted here and here about Independent Foreclosure Review. If your home was in foreclosure in 2009 or 2010, here are some of the basic errors and problems that the review will attempt to uncover and for which you may receive compensation: Continue reading