Hands holding little wooden house on blackboard background. Symbol of construction, security or sweet home concept

Hands holding little wooden house on blackboard background. Symbol of construction, security or sweet home concept


















Since the housing market crash of 2007, we have all been exposed to a seemingly endless number of horror stories. From families that can no longer afford their mortgage to fraudulent lending and re finance schemes, there is no short list of victims across the United States that have had their lives turned upside down.

To make matters worse, many victims of foreclosure and fraud have continued to express their disdain for the foreclosure system and the perception that legislators and law enforcement are not putting enough emphasis on stopping the illegal practices of companies throughout the company.

However, in a recent decision, the California Supreme Court ruled unanimously in favor of a homeowner whose property was fraudulently foreclosed upon. In the case of Yvanova v. New Century Mortgage Corporation, the court found that:

“A home owner that has been foreclosed on by one with no right to do so has suffered an injurious invasion of his or her legal rights at the foreclosing entity’s hands.”

Here, Tsvetena Yvanova sought and purchased a mortgage from New Century in 2006. Thereafter, New Century went bankrupt in 2007. In 2011, New Century was able to transfer the mortgage to a 3rd party trust. This, of course, was done so illegally as the specific pool to which the mortgage was transferred explicitly stated that the mortgage needed to be placed in that pool by January 27, 2007.

When the newest trustee, Western Progressive, foreclosed on the property and the property was sold in 2012, Ms. Yvanova argued that the foreclosure was illegal on the basis that New Century did not have the right to transfer the deed of trust. As such, Yvanova argued that the assignment document was false and the foreclosure should be voided.

In spite of the appeals court ruling against Yvanova, the California Supreme Court ruled in her favor in noting that an allegation that an assignment is void, can support an action for wrongful foreclosure.

Ultimately, this brings up the bigger issue that we began with. That being the fact that legislators and law enforcement need to do much more in curbing this illegal practices. This is something that simply is not being committed to. So long as both local and federal government entities and law enforcement continue to turn a blind eye to these issues, individuals and families will continue to be victimized.

Contact Distinct Assets Realty for all of your real estate needs!

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