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Defects in the Assignment of a Foreclosing Entity to the Note and Deed of Trust Voids Authority to Foreclose.

Posted on: August 20, 2016

In the case of Yvanova v. New Century Mortgage Corp (2016) 62 Cal. 4th, the Supreme Court of California reversed a previous decision by the Court of Appeal holding that the borrower lacked standing to assert defects in the assignment of the note and deed of trust to a foreclosing entity.

The Supreme Court held that a home loan borrower has standing to claim a nonjudicial foreclosure is wrongful because an assignment that the foreclosing entity supposedly took a beneficial interest in the deed of trust was not only voidable but in itself void, thus taking away the authority to foreclose or order a trustee’s sale.

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