Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

When Second TD Lender Sues Balance Owed After 1st TD Lender Foreclosed and Took Home

March 13, 2015

Alborzian v. JPMorgan Chase Bank, N.A.
Court: California Court of Appeal
Docket: B251625
Opinion Date: March 12, 2015
Areas of Law: Banking, Consumer Law

Plaintiffs obtained loans to purchase their home in 2005, each secured by a deed of trust. Wells Fargo had the senior lien, and Chase had the junior lien. Wells Fargo foreclosed on the property, but the proceeds were not enough to pay off Chase’s loan. About a year later, Chase sent plaintiffs a letter, stating that plaintiffs still “owe[d]” $67,002.04 and offering to accept $16,750.56 “as settlement for [their] loan balance.” The letter purported to offer a short window of opportunity to resolve the] delinquency before the debt was accelerated. In its final sentence, the letter disavowed any “attempt to collect a debt or to impose personal liability” that “was discharged.” Chase sent a similar second letter. Chase and PRS also made collection calls to plaintiffs. Plaintiffs sued Chase and PRS on behalf of a potential class, claiming that Chase’s right to enforce its loan against them personally had been extinguished and that defendants’ letters and calls were misleading for implying that the debt was still owed. Plaintiffs cited California’s Rosenthal Act, Consumer Legal Remedies Act (CLRA), and Unfair Competition Law (UCL), and the federal Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692. The trial court dismissed. The court of appeal held that a borrower may sue the debt collector under the FDCPA and may sue the junior lienholder or its debt collector under the Rosenthal Act and UCL, but may not sue for violations of CLRA.

Read more.

 

------------------------------------
Nancy Duffy McCarron, CBN 164780
Attorney, Real Estate Broker, BBB Arbitrator, CA Notary Public
Certified Forensic Loan Auditor, Property Manager

 

Back to Letters from the Editor Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

 

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer

Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:



 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package