Knapp

Johnn and Margaret Knapp (Borrowers) lost their home through nonjudicial foreclosure sale in November 2002, nearly one year after the original date noticed for the sale. During the entire time that the foreclosure sale was threatened, they did nothing to cure their default. Afterward, the buyer at the trustee’s sale filed an action to evict Borrowers. Two weeks later, Borrowers sued to set aside the trustee’s sale, claiming that the sale notice was never served, as required under Civil Code section 2924b, subdivision (b)(2). Their suit was consolidated with the unlawful detainer action.

The lender, trustee, and buyer sought summary judgment in the action to set aside the foreclosure. They effectively negated Borrowers’ claim that the sale notice was not served. Borrowers opposed summary judgment by raising other claims—not alleged in their complaint—that the foreclosure proceedings were irregular because of defects in the default notice and sale notice. After affording Borrowers three separate hearings and the opportunity (twice) to submit supplemental briefing, the trial court granted summary judgment. The unlawful detainer case proceeded to trial, and the buyer was…