MacAlma

ORDER

On December 13, 1995, the Court heard arguments on the parties’ cross motions for summary judgment. Having considered the arguments of counsel and the papers submitted, the Court hereby GRANTS defendant’s motion for summary judgment and DENIES plaintiffs motion for summary judgment.

I. BACKGROUND

A. Factual Background and Procedural History

Plaintiffs in this action are Florentino and Norma Macalma, debtors in a total of three separate bankruptcy proceedings. The defendant is Bank United of Texas, which held a deed encumbering the plaintiffs jointly owned home located at 4449 Norocco Circle in Fremont, California.

On August 19, 1992, plaintiff Norma Ma-calma filed a Chapter 11 bankruptcy petition (“First Petition”). On or about August 1, 1993, plaintiffs Norma and Florentino Macal-ma defaulted on the loan held by defendant Bank United of Texas. Plaintiff Norma Ma-calma’s Chapter 11 reorganization plan was approved by the court on or about August 11, 1993. On April 6, 1994, defendant initiated foreclosure proceedings on the loan by causing a Notice of Default to be recorded.

On July 15, 1994, defendant recorded a Notice of Trustee’s Sale and published the notice three…