SO GOES MOST OF THE NATION ON DEFENSES TO WRONGFUL FORECLOSURE.
In a case called Yvanova, the Supreme Court of California granted review in a case involving standing to raise the issue of a defective assignment of a note and deed of trust as a defense in a wrongful foreclosure action. Depending on how the California Court answers that question, the wrong plaintiff may be pursuing that foreclosure action.
The Supreme Court granted review in Yvanova almost a year ago. It seems like that was very long ago to some people, so long that they have apparently forgotten what the California high Court’s review is about. To some degree, it may be the California Supreme Court’s own fault, letting the case lie untouched to human eyes for nearly a year, but that happens in law and not just in the California Supreme Court.
At any rate, several commentators have recently observed that the California Supreme Court was considering a homeowner’s standing to raise the issue of wrongful foreclosure – period.
Nah. That is not what they were doing when they granted review. Here is what the California Supreme Court said they are going to review in that case:
Briefing and argument is limited to the following issue (see Cal. Rules of Court, rule 8.516(a)(1)): In an action for wrongful foreclosure on a deed of trust securing a home loan, does the borrower have standing to challenge an assignment of the note and deed of trust on the basis of defects allegedly rendering the assignment void?
Yvanova v. New Century Mort. Corp., 331 P.3d 1275, 176 Cal. Rptr. 3d 266, 266 (Cal. August 27, 2014).
The issue accepted for review by the Supreme Court is an important one. The Supreme Court’s answer will affect the resolution of many wrongful foreclosure actions, and not just actions in California as the Courts of other States and jurisdictions follow or even distinguish and reject the Californians’ lead.
But it is totally not the same issue as whether a homeowner has standing to raise the issue of, i.e., file a claim for, wrongful foreclosure – period.
Please Read The Disclaimer. ©2015 by Dennis J. Wall, author of “Lender Force-Placed Insurance Practices” (American Bar Association 2015). All Rights Reserved.