Facts

Cherie Adams sued Axiom Bank and Roundpoint Mortgage Servicing Corp.

PLAINTIFF'S CONTENTIONS:
IIn 2014, plaintiff sought a home loan modification due to the economic downturn. Plaintiff allegedly relied on defendant Axiom's representations that she was pre-approved for a loan modification. Thereafter, defendant Roundpoint recorded a Notice of Default on plaintiff's property. Plaintiff was unaware that Roundpoint had been substituted as trustee under the Deed of Trust. Axiom allegedly told plaintiff that the Notice of Default was recorded in error and instructed plaintiff to ignore it. In June, Roundpoint recorded a Notice of Trustee's Sale on plaintiff's property of which plaintiff had no prior notice. Again, Axiom told plaintiff the Notice of Trustee's Sale was recorded in error and should be ignored. In July, Axiom denied plaintiff's loan modification application and, immediately thereafter, defendants sold plaintiff's property at auction. Thereafter, the purchaser instituted eviction proceedings on plaintiff. Plaintiff eventually obtained a rescission of the trustee's sale. Plaintiff sought another modification, which defendants dragged on in a very slow process. Plaintiff later sued defendants for engaging in bad faith regarding her loan modification negotiation. Plaintiff asserted causes of action for violation of Homeowners Bill of Rights, Civil Code Section 2923.6(c), intentional misrepresentation, negligent misrepresentation, violation of Business and Professions Code Section 17200, and promissory estoppel.

DEFENDANTS' CONTENTIONS:
Defendants demurred, challenging the sufficiency of plaintiff's allegations. The complaint allegedly does not state facts sufficient to constitute a cause of action.

Result

The court sustained the demurrer with leave to amend on the ground that, inter alia, plaintiff's husband was also a co-borrower on the loan, which may expose defendants to multiple and inconsistent rulings. Adams should be joined as a party.

Other Information

FILING DATE: Dec. 16, 2015.