Hodges

This is an appeal following a court trial resulting in a judgment for the plaintiffs, Racheal Hodges and Carlos Hodges, enjoining the defendants, Joel Mark, Paul Calvo, Jeff Mann, and Ivan Campana, from foreclosing on two deeds of trust each securing a $50,000 promissory note made by plaintiffs in favor of Joel Mark. The plaintiffs have filed a cross-appeal from a nonsuit granted in favor of defendant Mark.

Factual and Procedural Background

On October 10, 1991, plaintiffs filed a complaint to enjoin Mark from foreclosing on several parcels of plaintiffs’ real property, contending that the foreclosures would violate the antideficiency statutes. The complaint alleged that Mark made fraudulent misrepresentations about the apartment building which was the subject of the underlying transaction spawning this litigation. The operative facts are drawn from the complaint and are summarized below.

In December 1990, Hodges, as buyer, and Mark, as seller, entered into a purchase and sale agreement for the purchase of a 30-unit apartment building at 5201-5211 Hoover Street and 802-810 West 51st Street, Los Angeles, California. Pursuant to the terms of the agreement, Hodges paid…