At issue was a loan which had been reassigned since origination. The appellant argued that since the investment trust which owned the loan had a closing date of 2007, the mortgage should never have been assigned to that trust. As such, the deed of trust was invalid.
As a result of this ruling, homeowners again have the power to challenge investors and banks when their home has been wrongly foreclosed. That may mean that the California Superior Courts will experience a rash of wrongful foreclosure cases being filed. As plaintiff’s attorney Richard Antognini said, “There will be a flood of litigation only because the lending industry was not diligent in doing its paperwork during the housing finance boom.”
To read more, see: http://www.nationalmortgagenews.com/news/servicing/calif-supreme-court-lets-borrowers-challenge-wrongful-foreclosures-1072231-1.html