Ayala

Proceedings: (In Chambers) Order Granting Defendants’ Motion to Dismiss and Granting Wachovia’s Motion to Expunge

Pending before the Court is Defendants’ Motion to Dismiss Plaintiffs Complaint and Wachovia’s Motion to Expunge. The Court finds the matter appropriate for decision without oral argument. Fed. R.Civ.P. 78; Local R. 7-15. After considering the moving papers, the Court hereby GRANTS Defendants’ Motion to Dismiss and GRANTS Wachovia’s Motion to Expunge.

I. Background

According to plaintiff Fidel Ayala (“Ayala”), he and his wife, plaintiff Cristina Hernandez (“Hernandez”) (collectively, “Plaintiffs”), purchased a single family residence in Oxnard, California in 1996 (the “Property”). At some point in late 2005, defendant World Savings Bank, FSB (“World”) contacted Plaintiffs by phone. World offered Plaintiffs a refinancing loan in the amount of $420,000 (the “Loan”), and a home equity line of credit in the amount of $16,000.00 (the “HELOC”). The Loan came with an initial “teaser rate” of 2.750% and had a cap of a maximum rate of 11.950% with negative amortization of the original principal. As far as repayment plans went, World offered Plaintiffs a “Pick a Payment”…