San Diego Housing Commission v. Rodriguez CA4/1

I.

BACKGROUND

This case arises from a pair of loans that SDHC made to Michele Rodriguez in 2007: (1) a $210,340 “affordable for sale” (AFS) loan and (2) a $17,966 “first time homebuyer” (FTHB) loan (collectively, the SDHC loans). Each loan was evidenced by a promissory note (collectively, SDHC promissory notes); and each promissory note was secured by a deed of trust (collectively, SDHC deeds of trust) to a residential property (subject property) owned by Rodriguez. The SDHC deeds of trust each included these three provisions: “4. Prior Mortgages and Deeds of Trust; Charges, Liens. Owner shall perform all of Owner’s obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust, including Owner’s covenants to make payments when due. Owner shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust. “6. Preservation and Maintenance of Property. Owner will keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the property. Owner shall perform all of Owner’s…