WRONGFUL FORECLOSURE CASE: A $500,000 JUDGMENT VICTORY

Winning Justice for Homeowners: A Wrongful Foreclosure Case in Los Angeles

Challenging Foreclosure and Securing Financial Relief in Los Angeles & Orange County, CA

Case Overview

In this bankruptcy adversary proceeding, the client faced wrongful foreclosure after the trustee claimed additional defaults, even after the second lien was brought current. The debtor’s home was foreclosed upon despite fulfilling the necessary payment requirements, leading to significant legal action. The suit also involved third-party buyers of the property.

Legal Approach

Our firm promptly filed a complaint and a Notice of Pending Action to halt the wrongful foreclosure. During the three-day trial, we demonstrated that the foreclosure was improper. We successfully argued that the trustee acted unlawfully by refusing to honor the debtor’s rightful payment, pushing for relief through the court system.

Outcome

The court ruled in favor of our client, awarding a $320,000 judgment after accounting for the $170,000 already paid. The ruling was upheld by the Bankruptcy Appellate Panel of the Ninth Circuit, and the case was settled before reaching the Ninth Circuit itself.

Case Significance

This case underscores the importance of challenging wrongful foreclosure in bankruptcy proceedings. It highlights how prompt legal action and strategic litigation can protect homeowners from predatory foreclosure practices and secure fair compensation.