Bank of America, NA v. LA JOLLA GROUP II

This case involves a nonjudicial foreclosure sale conducted by mistake after the homeowner and lender entered into an agreement to cure the homeowner’s default and reinstate the loan. The lender did not inform the trustee of the agreement before the scheduled auction at which the property was sold to a third party. The lender sued the buyer to cancel the deed the buyer received after the sale. Judgment was entered for the lender after the court granted its motion for summary adjudication on the issue of ownership of the property. Seeing no merit in the buyer’s claim that it received good title despite the mistake on which the sale was based, we affirm.

FACTUAL AND PROCEDURAL HISTORIES

The facts are essentially undisputed. Michael and Ruth Selesia (trustors) owned a house in Fresno. The house was encumbered by a deed of trust securing a loan of $15,000. The loan went into default due to missed payments, and Bank of America, N.A., the lender and beneficiary under the deed of trust (beneficiary), directed trustee Executive Trustee Services, Inc. (trustee), to record a notice of default and election to sell under deed of trust and a notice of trustee’s sale. The sale was…