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News & Press: Court Cases

Trustee's Sales

Monday, December 19, 2016  
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Mendoza v. JP Morgan Chase Bank

In this action to set aside a trustee's deed, a borrower challenged a securitized trust's ownership of a deed of trust by alleging that the attempts to transfer the deed of trust to the securitized trust (which was formed under New York law) occurred after the trust's "closing date". Under New York law, transfers that violate the terms of the trust instrument are voidable by the parties to the trust agreement, not void, and the borrower is a third party without standing to challenge the validity of an assignment that is merely voidable by the parties to the assignment.

Cal.App., 3rd Dist. (C071882) 12/13/16 (On remand)

Docket

Sup. Ct. Docket


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