REF Apartments v. Heredia CA1/4

BACKGROUND

The Foreclosure Sale and Subsequent Lawsuits In 2007, the Heredias entered into a residential loan agreement with Countrywide Bank, N.A. (Countrywide) for

1 $712,000.1 The loan documents listed an incorrect address for the property. The notary conducting the loan document signing advised the Heredias to sign the documents as-is and then notify the bank of the error. The Heredias signed the loan documents and immediately thereafter notified Countrywide of the incorrect address. Countrywide updated its internal records so communications were sent to the Heredias at the correct address, but Countrywide recorded a deed of trust with the incorrect property address. Sometime later, Gilbert2 contacted Countrywide about a loan modification, and Countrywide advised him that he would need to default on the loan before the bank would process a request for a loan modification. The Heredias accordingly defaulted on their loan, and Countrywide recorded a notice of default on March 6, 2009. That same day, Countrywide assigned the loan to Bank of America, and the deed of trust to Recontrust Company (Recontrust) on behalf of Bank of America. After receiving the notice of default, the…