Zmay

BACKGROUND

In 2006, Zmay secured a loan by deed of trust against his home. The loan was the property’s second position lien. In 2021, he began trying to modify the loan after his COVID-related forbearance expired. In March 2024, after “a drawn out back and forth between the two parties,” Clear Recon Corporation — the bank’s trustee — began foreclosure proceedings and recorded a notice of default after Zmay failed to keep current

1 on his payments.1 In June, the bank sent him a letter stating that his modification request was complete, but he needed to provide a utility bill verifying occupancy. He provided the bill. In June, the bank — through Clear Recon — recorded a notice of trustee’s sale scheduled for August 21. It attached a declaration to the notice of default stating it “[c]ontacted the borrower to assess the borrower’s financial situation and to explore options for the borrower to avoid foreclosure in accordance with” Civil Code section 2923.55, subdivision (b)(2) (undesignated statutory references are to this code). On August 24 — after the scheduled sale — Zmay received a payoff statement. Upon receiving the statement, he called the bank. It told him that, “as long as…