Facts: A homeowner defaults on their mortgage and is issued a notice of default (NOD) and, subsequently, a notice of trustee’s sale (NOTS). The homeowner and mortgage holder verbally agree to postpone the trustee’s sale while negotiating a mortgage modification. The mortgage holder later notifies the homeowner in writing their mortgage modification is declined and forecloses.

Claim: The homeowner seeks to remain in the residence while pursuing money losses, claiming the mortgage holder improperly foreclosed since they verbally agreed to postpone the trustee’s sale, precluding the homeowner from reinstating their mortgage.

Counterclaim: The mortgage holder claims the homeowner is not entitled to money losses since the homeowner was notified in writing their mortgage was removed from modification review and the foreclosure process would resume.

Holding: A California court of appeals holds the homeowner is not entitled to money losses or to remain in the residence since the mortgage holder properly provided all necessary notices satisfying foreclosure requirements. [Granadino v. Wells Fargo Bank, N. A. (2015) CA 2nd B256511]


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