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New Cases of Interest - February 26, 2016
Coker v. JPMorgan Chase Bank N.A. (2016) 62 Cal.4th 667. This was a matter which involved a short sale of a condominium and the question was whether the anti-deficiency protections apply not only when a bank initiates a foreclosure sale, but also when the defaulting borrower arranges a short sale. The lender of course agrees to release its lien in order to facilitate the short sale.
The court held that the short sale was subject to the same anti-deficiency protections as are otherwise set forth in CCP § 580b, barring any deficiency by the lender.
Castillo v. DHL Express (USA) (2015) 243 Cal.App.4th 1186. In this case the court holds that a private mediation, one which the parties agreed to but which was not court-ordered, does not extend the time to bring a case to trial absent any further stipulation by the parties that it would extend that period. The automatic tolling provisions in CCP§ 1775.7 apply only to mediation which is court ordered.
Majd v. Bank of America, N.A. (2015) 243 Cal.App.4th 1293. This is an action in which a homeowner alleged that property had been wrongfully foreclosed. The court found that the homeowner's claim that the foreclosure was improper because it occurred while the loan servicer was reviewing his loan for a modification under the Home Affordable Modification Program, and stated a claim under the unfair competition law as well as for wrongful foreclosure, provided that the plaintiff borrower could allege that the party conducting the foreclosure sale was an agent of the loan servicer. The court found that the homeowner should have been given leave to amend to allege that agency relationship. The homeowner also had a cause of action for cancellation of the trustee's deed upon sale but had to join the foreclosing trustee as a defendant which also had not been done but leave to amend should be granted to allow.