Hovannisian v. First American Title Ins. Co.

Coverage under a standard California lender’s policy of title insurance terminates once the property is sold, without warranty, at a foreclosure sale.  To secure its loan to the owners, Wells Fargo obtained what was labelled “First Deed of Trust,” and it obtained a title policy insuring its lien’s status as the senior lien on the…

PGA West Residential Assn., Inc. v. Hulven International, Inc.

A suit to cancel a deed of trust defendant gave his wholly-owned corporation to avoid paying his debts was barred by the California Uniform Fraudulent Transfer Act’s a 7-year statute of repose on fraudulent transfer claims.  This decision holds that Civ. Code 3439.09(c)’s seven year limit is a statute of repose, not a statute of…

Jones v. Royal Administration Services, Inc.

An advertiser bears vicarious liability for a telemarketer’s Telephone Consumer Protection Act violations, if the telemarketer was an agent rather than an independent contractor—a question resolved under federal common law by applying the 10-factor Restatement of Agency test.  An advertiser bears vicarious liability for its telemarketer’s TCPA violations only if the telemarketer is an agent…

Conroy v. Wells Fargo Bank, N.A.

A loan servicer owes a borrower no duty of care in handling his home loan modification application; also, unless the borrower documents a change in financial circumstances, dual tracking prohibitions do not apply to second/subsequent loan modification requests, even if the lender accepts, processes, and reviews the later loan applications.  This decision holds that a…

Crossroads Investors, L.P. v. Federal National Mortgage Assn.

Lender’s alleged failure to (1) provide reinstatement amounts in response to a defaulted borrower’s request or (2) respond to plaintiff’s claimed tender of arrearages under the deed of trust, were protected activity under the Anti-SLAPP statute, but only because they occurred in the context of the borrower’s bankruptcy proceeding.  In this case, the Court of…

Deutsche Bank National Trust Co. v. Pyle

A void default judgment, obtained without proper service on the defendant, cannot be the foundation of a valid claim of title to property, so the secured lender against whom the default judgment was entered prevails over a bona fide purchaser from the plaintiff.  Following OC Interior Services, LLC v. Nationstar Mortgage, LLC (2017) 7 Cal.App.5th…

Sleep EZ v. Mateo

Normally, a payment is not “made” until the creditor receives it; however, if the creditor directs payment by mail, the payment is “made” when deposited in the mail.  When a landlord directs a tenant to pay rent by mail (or any other creditor directs payment of a debt by mail), payment is complete when the…

Schep v. Capital One, N.A.

Given the clear chain of title leading to deed of trust and one defendant’s status as its trustee, foreclosing defendants were justified in their good faith belief in their right to foreclose; so recording of foreclosure-related documents was privileged activity, and no viable cause of action could arise therefrom.  Under Civ. Code 2924(d)(1) and (2),…

Hilliard v. Harbour

Senior citizen who held controlling interest in corporate borrower could not state elder abuse claim against lender that foreclosed on borrower; the senior citizen suffered only derivative harm; any damage claim belonged solely to the corporate borrower.  Hilliard, a 78-year-old, owned a controlling interest in Crystal Companies, which owned radio stations.  Wells Fargo lent $20…

In re Turner (Turner v. Wells Fargo Bank, N.A.)

A borrower lacks standing to challenge foreclosure based on late assignment of the loan to a securitized trust as breach of the trust agreement renders the assignment voidable, not void, the borrower is not a third party beneficiary of that agreement, and the defects do not harm the borrower who would be foreclosed anyway.  A…

Black Sky Capital, LLC v. Cobb

CCP 580d does not bar a creditor from suing a borrower to collect on a note secured by a junior lien that was extinguished by a non-judicial foreclosure of a senior lien, even if the creditor also held the senior lien on which it non-judicially foreclosed.  Disagreeing with Simon v. Superior Court (1992) 4 Cal.App.4th…

Henson v. Santander Consumer USA, Inc.

An entity that collects debts that it has purchased for its own account is not a “debt collector” for FDCPA purposes, since it is collecting on the debts for itself and not for another.  An entity that collects debts that it has purchased for its own account is not a debt collector subject to the…