Report from the Thordsen Law Offices:
Did you loan money secured by a note and deed of trust?
Did you assign them to a buyer?
Was the buyer investor sued by the borrower?
If you are a broker, read your investor/lender contract. This opinion states you are responsible for all losses regardless of the reason:
On February 18, 2016, the California Supreme Court issued its opinion in the case of Tsvetana Yvanova v. New Century Mortgage Corporation. This decision allows borrowers to file lawsuits for wrongful foreclosure and the borrower/homeowner could seek to halt or delay foreclosures on their homes where the mortgages are loans pooled into securitized trusts. The borrower on a home loan secured by a deed of trust may sue for wrongful foreclosure alleging that a purported assignment of the note and deed of trust to the foreclosing party had defects making the assignment void.
The California Supreme Court, in a unanimous opinion, held that “a borrower who has suffered nonjudicial foreclosure does not lack standing merely because he or she was in default on the loan and was not a party to the challenged assignment.” [Read more…]