Justia California Court of Appeals Opinion Summaries

In 2007 Rufini purchased his Sonoma residence with a $600,000 loan. Rufini and his fiancée lived in the home until they separated. In June 2009, CitiMortgage approved Rufini for a loan modification and told him he would receive a permanent modification after making timely trial payments of $2787.93 in July, August and September. Rufini timely made the payments at the modified rate through December. In January, 2010, CitiMortgage informed him that his permanent loan modification agreement would be ready in three days. Three months later, with still no written agreement, he rented out his house to offset expenses In August Rufini learned that Citibank was denying his loan modification, because the home was not owner-occupied. He attempted to make timely mortgage payments at the modified level, but CitiMortgage returned his checks. Rufini received a notice of default in September 2010, followed by a notice of trustee’s sale scheduled for January 2011. He contacted CitiMortgage and obtained its agreement to delay the foreclosure. CitiMortgage assigned Semien to Rufini’s account, but Rufini was unable to contact him on the phone for three and a half weeks. On April 11 Rufini was informed his modification was “in final state of completion.” On May 4, his house was sold at auction. The trial court dismissed Rufini’s complaint alleging “breach of contract—promissory estoppel,” breach of fiduciary duty, breach of the implied covenant of good faith and fair dealing, unfair business practices, negligence, and negligent misrepresentation. The appeals court reversed and remanded the claims of negligent representation and under Business and Professions Code section 17200, the unfair competition law. View "Rufini v. CitiMortgage" on Justia Law

Wellesly owned real property subject to a first deed and a junior mechanic's lien. The holder of the mechanic's lien subsequently filed suit to foreclose its lien, arguing that the lien was not eliminated by a foreclosure. The court held that, under well-established California law, the senior beneficiary's lien and title ordinarily do not merge when a deed in lieu of a foreclosure is given if there are junior lienholders of record; the foreclosure after acceptance of the deed was therefore valid and eliminated all junior liens, including plaintiff's mechanic's lien; and the third party now owns the property free of all such junior encumbrances. Accordingly, the court reversed the superior court's foreclosure order on the mechanic's lien. View "Decon Group v. Prudential Mort." on Justia Law