Source: https://trellis.law/ca/issue-type/setting-aside-a-trustee-sale-252
Timestamp: 2020-07-15 02:28:18
Document Index: 322454899

Matched Legal Cases: ['§2924', '§2923', '§2924', '§17200', '§ 2932', '§ 2023', '§ 2023', '§ 7']

What is setting aside a trustee sale?
“After a nonjudicial foreclosure sale has been completed, the traditional method by which the sale is challenged is a suit in equity to set aside the trustee’s sale.” (Lona v. Citibank (2011) 202 Cal. App. 4th 89, 103.)
The elements of a cause of action to set aside the trustee’s sale:
the trustee caused an illegal, fraudulent, or willfully oppressive sale of real property pursuant to a power of sale;
the party attacking the sale was prejudiced or harmed; and
(Id at 104.)
The trustee’s failure to comply with statutory requirements for the notice or conduct of the sale may provide justification for setting it aside. (Id at 105.)
Verified Complaint Requirement
Under Code of Civil Procedure Section 761.020, a complaint that seeks to establish title against adverse claims to real property must be verified.
Overcoming Statutory Presumption
The plaintiff in an action must overcome the statutory presumption of Civil Code Section 2924(c) that the foreclosure sale was conducted properly. (Moeller v. Lien (1994) 25 Cal.App.4th 822, 831; see also, Nguyen v. Calhoun (2003) 105 Cal.App.4th 428, 441 citing in relevant part: “If the trustee’s deed recites that all statutory notice requirements and procedures required by law for the conduct of the foreclosure have been satisfied, a rebuttable presumption arises that the sale has been conducted regularly and properly; this presumption is conclusive as to a bona fide purchaser.”)
“[A] trustor cannot set aside a foreclosure sale to a bona fide purchaser for value based on irregularities in the foreclosure process, except in the case of fraud.” (Melendez v. D & I Investment, Inc. (2005) 127 Cal. App. 4th 1238, 1256.)
“A trustor has no right to set aside a trustee’s deed as against a bona fide purchaser for value by attacking the validity of the sale.” (Moeller v. Lien (1994) 25 Cal. App. 4th 822, 832.)
“In limited circumstances, a foreclosure sale can be successfully challenged only if the buyer is not a bona fide purchaser.” (6 Angels, Inc. v. Stuart- Wright Mortgage, Inc. (2001) 85 Cal. App. 1279, 1286.)
The elements of bona fide purchaser:
payment of value,
without actual or constructive notice of another's rights.
(Melendrez v. D & I Investment, Inc. (2005) 127 Cal. App. 4th 1238, 1251.)
“It is not necessary for the buyer to pay fair market value as long as valuable consideration is paid.” (Id.)
“A recital in the deed executed pursuant to the power of sale of compliance with all requirements of law regarding the mailing, service or posting of copies of the notice of default and notice of sale constitutes prima facie evidence of compliance with these requirement and conclusive evidence thereof in favor of bona fide purchases for value without notice.” (Cal. Civ. Code §2924(c).)
Useful Rulings on Setting Aside a Trustee Sale
BRECKENRIDGE PROPERTY FUND VS WILLIAMSON
The Court overrules the demurrer as to the Conversion cause of action, however, the Court orders the parties to meet and confer as described below. The Court sustains without leave to amend as to the Wrongful Foreclosure, Set Aside Trustee Sale and Cancellation of Instruments causes of action. SUMMARY OF MATTER This is a quiet title action. Plaintiff/Cross-Defendant Breckenridge Property Fund (“Br...
..e, Cross-Defendant SBS Trust Deed Network dba SBS Lien Services (“SBS”), issued a Trustee’s Deed Upon Sale (“TDUS”), which was recorded by Breckenridge. Williamson claims that the sale was improper. Breckenridge filed its Complaint on February 26, 2018. It asserts one cause of action for Quiet Title. On June 28, 2018, Williamson filed a Cross-Complaint. After SBS’s demurrer was sustained with leav...
Antonio Vico vs Countrywide Home Loans Inc et al
Nature of Proceedings: Demurrer to First Amended Complaint; Motion: Strike First Amended Complaint; Case Management Conference The court sustains the demurrer of defendants Countrywide Home Loans, Inc., Recontrust Company, N.A., Bank of America, N.A., for itself and as successor by merger to BAC Home Loans Servicing LP, The Bank of New York Mellon, N.A., erroneously sued as The Bank...
..located at 5811 Cathedral Oaks Road, Goleta, California (the “Property”). (First Amended Complaint [“FAC”], ¶ 13.) On December 7, 2005, Vico executed a promissory note (the “Note”) secured by a deed of trust (“DOT”) on the Property. (FAC, ¶¶ 18, 19.) The DOT identifies defendant Countrywide Home Loans, Inc., (“Countrywide”) as the lender, defendant Mortgage Electronic Registration System, Inc. (“...
Alice Grady v. Woodleaf Commons Homeowners Association, et al.
I. Factual and Procedural Background This case brought by plaintiff Alice Grady (“Plaintiff”) against defendants Woodleaf Commons Homeowners Association (“Woodleaf”), G&P Enterprises, LLC d/b/a Allied Trustee Services (“Allied”), and Hung V. Lu (“Lu”) (collectively, “Defendants”) arises from a non-judicial foreclosure of Plaintiff’s home. According to the allegations of the complaint, Plaintiff...
..delinquent homeowners association fees, and a lien was placed on the Property. Subsequently, Woodleaf caused a Notice of Default to be recorded. Approximately two years later, Woodleaf caused a Notice of Trustee Sale to be recorded against the Property. Allied was the trustee listed on the Notice of Trustee Sale. Shortly thereafter, the Property was sold to Revestors LLC for $189,300. Revestors L...
Katherine Golub Smith vs MTI Capital et al
Nature of Proceedings: Demurrer Santa Barbara County Superior Court Department 5 Judge Colleen K. Sterne Tentative Ruling December 10, 2012 Case: Katherine Anne Golub-Smith v. MTI Capital, Inc., Case No. 1413042, Matter: Demurrer To Complaint Tentative Ruling: Defendants’ demurrer to the complaint is sustained for failure to state a cause of action. Plaintiff is granted f...
..bsequently defaulted on the loan. On October 24, 2011, the deed of trust was assigned to U.S. Bank National Association as Trustee for RFMSI 2007SA3. (RJN, Ex. 2.) On December 16, 2011, a substitution of trustee and notice of default were recorded in the records of Santa Barbara County. (RJN, Exs. 3, 4.) Plaintiff and her husband failed to cure the default and on March 19, 2012, a notice of tr...
Stephen Ronca v. Select Portfolio Servicing
Complaint Stephen Ronca (Ronca) brings this “dual tracking” foreclosure action against Wells Fargo Bank, Select Portfolio Servicing, Inc., and National Default Servicing Corporation. The complaint includes causes of action to set aside the sale, to cancel the trustee’s deed, violation of Civil Code §2923.6, violation of Civil Code §2924, negligence, and unfair business practices. Wells Fargo Bank...
..actice under Business and Professions Code §17200. Ronca alleges that Defendants wrongfully conducted the trustee’s sale without first responding to his loan modification application. Ronca alleges he was under the impression that his loan modification was under review when the property was sold out from under him at the trustee’s sale. The second cause of action for cancelation of the trustee’s d...
Nicholas Dorado vs Washington Mutual Bank
Nature of Proceedings: Demurrer The court sustains defendant JPMorgan Chase Bank, N.A’s demurrer to all three causes of action in plaintiff Nicholas Dorado’s complaint, without leave to amend. Setting aside foreclosure sale and canceling deed: The causes of action to set aside the trustee’s sale and to cancel the trustee’s deed are essentially the same cause of action. In order to set...
..ocedure.” Abdallah v. United Sav. Bank (1996) 43 Cal.App.4th 1101, 1110. The amount of the tender must be “the full amount of the debt for which the property was security.” Fpci Re-Hab 01 v. E & G Invs. (1989) 207 Cal.App.3d 1018, 1021. Plaintiff here has alleged tender of an unspecified amount described as “all amounts due and owing so that the claimed default may be cured and plaintiff may be r...
Recent Rulings on Setting Aside a Trustee Sale
Los Angeles County, CA (23)
COSME R SIBRIAN VS CARRINGRON MORTGAGE SERVICES LLC
Simone for (1) quiet title; (2) rescission; (3) set aside trustee sale; (4) intentional infliction of emotional distress; (5) breach of covenant of good faith and fair dealing; (6) unfair business practices; (7) negligence; (8) violation of Business & Professions Code section 17200 et seq.; and (9) declaratory and injunction relief. The first cause of action is asserted against all defendants except for Gomez & Simone and Stuart R.
MARVELL LENOX TELL JR VS RAY BROWN BOWEN JR ET AL
On May 9, 2019, the Court ruled on Defendants demurrer to the First Amended Complaint (“FAC”), and sustained with leave to amend the first cause of action for wrongful foreclosure, fourth cause of action to set aside trustee sale, and fifth causes of action for cancellation of deed, sustained without leave to amend as to the second cause of action for conspiracy to defraud, and overruled the demurrer to the third cause of action to quiet title.
Third Cause of Action: Set Aside Trustee Sale Defendant argues that the complaint lacks factual allegations to support the third cause of action to cancel the trustee’s deed upon sale (“TDUS”). (Demurrer, p. 9:23-27.) Defendant also asserts that because there was no tender, and Plaintiff has not alleged any tender, Plaintiff may not cancel the TDUS. (Id. at p. 10:12.)
RICARDO ARREDONDO VS POYA GHASRI, ET AL.
Seaside Demurrer First and Fifth Causes of Action: Set Aside Trustee Sale and Wrongful Foreclosure Seaside demurs to the First and Fifth Causes of Action on the grounds that the FAC fails to allege any procedural defect in the sale and fails to allege any prejudice or harm flowing from any alleged defects. (Seaside Demurrer at pp. 8-10.)
PAULA BOYD VS DAVID FREEMAN
Service Company (“TD”) (collectively, “Defendants”) alleging causes of action for (1) wrongful foreclosure, (2) setting aside trustee sale, (3) voiding or canceling trustee’s deed upon sale, (4) unjust enrichment, and (5) quiet title. The FAC alleges in pertinent part as follows. Boyd was the owner of a 16-unit apartment complex located at 125 W. Chestnut Street, Glendale, CA 91205 (“Property”). Boyd received over $12,000 a month from these rental units.
Demurrer: Third Cause of Action – Set Aside Trustee Sale Defendants demur to the 3rd cause of action on the grounds that Plaintiff failed to comply with the rule of tender. As previously discussed, Plaintiff’s pleadings allege an ineffective assignment and that the foreclosure sale was void. Thus, the rule of tender would not apply. The demurrer to the 3rd cause of action is OVERRULED.
The Court sustains without leave to amend as to the Wrongful Foreclosure, Set Aside Trustee Sale and Cancellation of Instruments causes of action. SUMMARY OF MATTER This is a quiet title action. Plaintiff/Cross-Defendant Breckenridge Property Fund (“Breckenridge”) purchased the subject property at a foreclosure sale after Defendant/Cross- Complainant Douglas Williamson (“Williamson”) allegedly failed to pay all assessments to Cross- Defendant Georgetown Square Community Association (“Association”).
The operative second amended complaint (“SAC”) alleges four causes of action for: 1) wrongful foreclosure; 2) quiet title; 3) set aside trustee sale; and 4) cancellation of deed. On April 17, 2019, Jones, specially appearing, moved to quash the service of summons and complaint. On July 24, 2019, Plaintiff filed an opposition. Plaintiff filed a supplemental opposition on July 26, 2019. On July 31, 2019, Jones filed a reply.
Service Company (“TD”) (collectively, “Defendants”) alleging causes of action for (1) wrongful foreclosure, (2) setting aside trustee sale, (3) voiding or canceling trustee’s deed upon sale, (4) unjust enrichment, and (5) quiet title. The FAC alleges in pertinent part as follows. Plaintiff was the owner of real property located at 125 W. Chestnut Street, Glendale, CA 91205 (“Property”). The Property possessed a 16-unit apartment complex and Plaintiff received over $12,000 a month from these rental units.
ANGELA FIGUEROA VS NATIONSTAR MORTGAGE LLC ET AL
Complaint Plaintiff Figueroa commenced this proceeding on August 24, 2018 against Defendants Nationstar, Bank, and Quality Loan Service Corporation (“Quality”), alleging causes of action for (1) violation of Civil Code section 2923.7, (2) violation of Civil Code section 2923.6, (3) violation of Civil Code section 2923.55, (4) breach of contract, (5) promissory estoppel, (6) negligence, (7) intentional misrepresentation, (8) negligent misrepresentation, (9) to set aside trustee sale, (10) quiet title, and (11
On January 17, 2019, Plaintiff filed the operative first amended complaint (“FAC”), alleging six causes of action for: 1) wrongful foreclosure; 2) conspiracy to defraud; 3) quiet title; 4) set aside trustee sale; 5) cancellation of deed; and 6) injunction. On February 8, 2019, Defendants filed a demurrer and motion to strike the FAC. On April 22, 2019, Plaintiff filed oppositions. On April 30, 2019, Defendants filed reply.
WASFY W. SHINDY, TRUSTEE OF THE WASFY W. SHINDY LIVING TRUST VS. SHELLPOINT MORTGAGE
(Opp’n at 1.) 2nd COA – To Set Aside Trustee Sale Plaintiff alleges the trustee’s sale should be set aside because: (1) Defendants “never had the legal authority to foreclose” in that their “interest was never acknowledged and recorded in violation of Civil Code § 2932.5”; (2) the trustee sale “violated the [HBOR]”; and (3) the Deed of Trust was “improperly assigned and/or transferred to the Foreclosing Defendants from the original lender.” (Compl. at ¶¶ 19, 20.)
The causes of action include: (1) wrongful foreclosure; (2) to set aside trustee sale; (3) to void or cancel trustee’s deed upon sale; (4) for unjust enrichment; and (5) to quiet title. ANALYSIS It is a misuse of the discovery process to fail “to respond or to submit to an authorized method of discovery,” (CCP § 2023.010(d)) or to disobey “a court order to provide discovery.” (CCP § 2023.010(g).)
procedural history Arredondo filed the Complaint on October 17, 2018, alleging five causes of action: To Set Aside Trustee Sale Declaratory Relief Quiet Title Injunction Wrongful Foreclosure Seaside filed the present Demurrer on December 19, 2018. Arredondo filed an untimely Opposition on February 6, 2019. Seaside filed a Response on February 11, 2019. On February 20, 2019, this Court ordered the hearing continued to allow Seaside to file a Reply. Seaside filed a Reply on April 2, 2019.
EMEZIEM VS. OCWEN LOAN SERVICING
Analysis (1) set aside trustee sale; (2) cancellation of trustee deed; (3) quiet title Plaintiff’s claims to set aside trustee sale, cancel the trustee deed, and for quiet title are premised primarily on his allegation that pursuant to a consent order between Ocwen and the California Commission of Business Oversight, he is entitled to loan modification and partial loan forgiveness. FAC at ¶ 13.
procedural history Arredondo filed the Complaint on October 17, 2018, alleging five causes of action: To Set Aside Trustee Sale Declaratory Relief Quiet Title Injunction Wrongful Foreclosure Seaside filed the present Demurrer on December 19, 2018. Arredondo filed an untimely Opposition on February 6, 2019. Seaside filed a Response on February 11, 2019. Discussion DEMURRER A demurrer should be sustained only where the defects appear on the face of the pleading or are judicially noticed.
Complaint Plaintiff Figueroa commenced this proceeding on August 24, 2018, alleging causes of action for (1) violation of Civil Code section 2923.7, (2) violation of Civil Code section 2923.6, (3) violation of Civil Code section 2923.55, (4) breach of contract, (5) promissory estoppel, (6) negligence, (7) intentional misrepresentation, (8) negligent misrepresentation, (9) to set aside trustee sale, (10) quiet title, and (11) unfair business practices.
CARLOS M DEL TORO VS WELLS FARGO BANK N A ET AL
., successor by merger to Wells Fargo Home Mortgage, formerly known as Wachovia Mortgage, FSB, World Savings Bank FSB; Breckenridge Property Fund 2016 LLC; National Default Services, LLC; Does 1 through 20 for (1) to set aside trustee sale; (2) to cancel trustee deed upon sale; (3) to quiet title; (4) accounting; (5) slander of title; (6) unfair business practices; (7) wrongful foreclosure; (8) injunctive relief; and (9) declaratory relief. On November 29, 2018, Defendant Wells Fargo Bank, N.A.
6741 HOLLYWOOD ASSOCIATES LLC VS PAULY'S PLACE INC ET AL
BC6884812 (“the First Action”), alleging the following causes of action against co-defendants WF, WSB, and NDS for: (1) To Set Aside Trustee Sale, (2) To Cancel Trustee Deed Upon Sale, (3) To Quiet Title, (4) Accounting, (5) Slander of Title, (6) Unfair Business Practices, (7) Wrongful Foreclosure, (8) Injunctive Relief, and (9) Declaratory Relief.
SUNG HEE PARK VS WESTERN PROGRESSIVE, LLC., ET AL.
In the operative original complaint, the Plaintiff asserts causes of action against all defendants for: (1) set aside trustee sale, (2) to cancel trustee’s deed, (3) quiet title, and (4) accounting. On September 27, 2018, the Plaintiff filed a notice of pendency of action (Lis Pendens) in connection with the Subject Property. RELIEF REQUESTED: Leave to intervene in the action as a party.
GUEVARA, MARK, ET AL VS. PNC BANK, N.A., ET AL
Based upon its review of the complaint and all attached exhibits, the court finds that the complaint alleges sufficient facts to adequately plead plaintiffs’ first cause of action for violation of Civil Code section 2923.6, second cause of action for breach of contract, third cause of action for promissory estoppel, seventh cause of action to set aside trustee sale and ninth cause of action for unfair business practices. The demurrer is overruled as to these causes of action.
MATTHEW J MATSON VS SBS TRUST DEED NETWORK
.) § 7.67, pp. 580–581, and cases cited therein summarizing grounds for setting aside trustee sale.)." Id., at 104. Plaintiffs cite Biancalana v. T.D. Service Co. (2013) 56 Cal.4th 807, Angell v. Superior Court (1999) 73 Cal.App.4th 691, Moeller v. Lien (1994) 25 Cal.App.4th 822, Bank of Seoul & Trust Co. v. Marcione (1988) 198 Cal.App.3d 113, and Crofoot v. Tarman (1957) 147 Cal.App.2d 443. In all of these cases, there was an issue of irregularity or unfairness in the sales proceeding.