Bank lost legal right to foreclose on a house after assigning all beneficial interest to a third bank.

Posted on: August 20, 2016

In the case Sciarratta v. U.S Bank National Assn. (2016) 247 Cal. App. 4th 552, the Court reversed the trial court’s ruling sustaining the bank’s demurrer, holding that plaintiff’s allegations that the bank had acted in a way that caused harm was sufficient to constitute a cause of action for wrongful foreclosure.
The homeowner had standing to assert a claim that the nonjudicial foreclosure was wrongful because the bank that was foreclosing the house had assigned all of its beneficial interests in the deed of trust to a third bank and had thus nullified it’s beneficial interest in the deed and thus had no legal right to take the house.