Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_18-cv-05535/USCOURTS-cand-4_18-cv-05535-1/pdf.json

Nature of Suit Code: 290
Nature of Suit: Other Real Property Actions
Cause of Action: 28:1332 Diversity-(Citizenship)

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

ELIZABETH GRANADOS,

Plaintiff,

v.

BANK OF AMERICA, N.A., et al.,

Defendants.

Case No. 4:18-cv-05535-KAW 

ORDER GRANTING EX PARTE 

APPLICATION FOR TEMPORARY 

RESTRAINING ORDER; ORDER TO 

SHOW CAUSE

Re: Dkt. No. 19

On May 24, 2019, Plaintiff Elizabeth Granados filed an ex parte application for temporary 

restraining order to enjoin the sale of the subject property, located at 90 Madera Court, Danville, 

CA 94526, which is scheduled for Trustee’s Sale on May 29, 2019. (Pl.’s Appl., Dkt. No. 19-1 at 

1.) The sale was initiated by Defendant J.P. Morgan Chase, despite the case being stayed, based 

on a stipulation signed by the parties, so that Plaintiff’s loan modification application could be 

reviewed. (See Stipulation, Dkt. No. 17.) 

Chase filed an opposition on May 24, 2019, stating that it had denied Plaintiff’s loan

modification application on April 10, 2019, and Plaintiff timely filed her appeal on May 8, 2019. 

(Defs.’ Opp’n, Dkt. No. 20 at 1-2.) On May 20, 2019, Chase denied Plaintiff’s appeal, and 

emailed a copy of the denial to Plaintiff’s counsel on that same date. (Defs.’ Opp’n at 2; Decl. of 

Dylan Hale, Dkt. No. 20-1 ¶ 3, Ex. B.) 

Under the California Homeowner Bill of Rights, Chase is precluded from conducting a 

trustee’s sale within 15 days of the denial of the appeal. Cal. Civ. Code § 2923.6(e)(2). Thus, 

even if the denial was issued on May 20, 2019, Chase would not be permitted to sell the subject 

property until after June 4, 2019. See id. There is also a question of whether Defendants 

impermissibly dual-tracked Plaintiff during the review process, as the undersigned does not know 

Case 4:18-cv-05535-KAW Document 21 Filed 05/28/19 Page 1 of 2
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United States District Court

Northern District of California

when the Notice of Trustee’s Sale was recorded. See Cal. Civ. Code § 2923.6(c) (2019) (cannot 

record a notice of sale while the first lien loan modification application is pending); see Cal. Civ. 

Code § 2924.11(a)

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(2018) (same); see also Pl.’s Appl. at 1.

Accordingly, Defendants, their employees, agents and/or any other person or entity acting 

with them or on their behalf are TEMPORARILY RESTRAINED and ENJOINED from selling 

the property located at 90 Madera Court, Danville, CA 94526.

Furthermore, the Court issues an ORDER TO SHOW CAUSE to Defendants to address 

whether the Notice of Trustee’s Sale was recorded while the case was stayed pending review of

Plaintiff’s loan modification application, and, if not, when it was recorded. Defendants shall also 

address why they apparently violated the Homeowner Bill of Rights in seeking to conduct a 

trustee’s sale within 15 days of denying Plaintiff’s appeal. Defendants shall file a response to this 

order by June 3, 2019. 

A case management conference is scheduled for July 2, 2019. The joint case management 

statement is due on or before June 25, 2019, and, in addition to the information required, the 

parties shall provide a proposed briefing schedule for Plaintiff’s motion for preliminary injunction.

IT IS SO ORDERED.

Dated: May 28, 2019

__________________________________

KANDIS A. WESTMORE

United States Magistrate Judge

 

1 The Court notes that Plaintiff erroneously cites to this section of the Civil Code, which was 

renumbered effective January 1, 2019.

Case 4:18-cv-05535-KAW Document 21 Filed 05/28/19 Page 2 of 2