Acord

BACKGROUND

Acord owned the property in Middletown. In January 2019, Acord signed a deed of trust using the property as security for a $60,000 loan (promissory note) from Dunshee. She made three monthly interest payments and then stopped paying for more than two years. Around December 2020 and January 2021, she discussed selling the property to Linde. Linde agreed to purchase it, with a portion of the purchase amount to be applied toward the promissory note. Meanwhile, Dunshee was paid an agreed settlement amount of $55,000 for the outstanding debt in March or April of 2021. In March 2021, Redwood Trust executed a reconveyance of the deed of trust, noting it “has been paid.” Specifically, Dunshee provided a written request to reconvey the deed of trust “by reason of the satisfaction of the obligations secured by said Deed of Trust.” Acord, however, did not record the deed of reconveyance. In January 2022, Dunshee nonetheless assigned to Linde, in a recorded document, all his rights under his deed of trust to the property. He also executed a rescission of the reconveyance of the deed of trust. Linde thereafter commenced a nonjudicial foreclosure. Redwood Trust recorded a formal…