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.

  In Mendoza v. JPMorgan Chase the court held that plaintiff lacked standing even if her loan or deed of trust was transferred to the securitization trust after the specified closing date, despite plaintiff’s claim that the assignment of the deed of trust was, therefore, void.

  The court specifically held that the attempted or intended securitization of a loan does not deprive the beneficiary of the deed of trust of the legal right to foreclose–whether or not a loan was effectively securitized is immaterial to whether the proper parties foreclosed on the loan. The statutory foreclosure process does not provide for an action to determine whether the entity initiating the foreclosure process is authorized.

  Plaintiff’s claim also failed for lack of prejudice: plaintiff failed to show the allegedly improper assignment interfered with plaintiff’s ability to pay or that the original lender would not have foreclosed under the circumstances.


   Mr. Daymude consults with clients and accepts cases involving real property, including those involving foreclosure and claims of wrongful foreclosure. For other types of cases accepted, please scroll the Home and My Practice pages. If you are seeking a legal consultation or representation, call Michael Daymude at 818-971-9409.

Jump to top