Facts: A homeowner defaulted on their loan and applied for a loan modification. The lender sent the homeowner a written denial of their loan modification application, but a bank representative told the owner over the phone that approval of a modification was still pending. The lender later sold the property at a trustee’s sale.
Claim: The homeowner sought money damages from the lender, claiming the lender improperly foreclosed on their property since they were in in the process of modifying the loan at the time of the trustee’s sale.
Counter claim: The lender claimed it had not improperly foreclosed as it was no longer considering the eligibility of the loan for modification since it had sent the homeowner a written denial prior to the trustee’s sale.
Holding: A California Court of Appeals held the lender did not improperly foreclose on the property since it sent the homeowner a written denial of the loan modification prior to the trustee’s sale. [Aspiras v. Wells Fargo (2013) __ CA4d __]