filed7/9/14 Irizarry v. Bank of New York Mellon CA1/2 Filed

BACKGROUND

I. Factual Background

Because this appeal arises from the sustaining of a demurrer, we state facts as contained in Monge-Irizarry’s TAC, as well as other matters that have been judicially noticed. (Fontenot v. Wells Fargo Bank, N.A. (2011) 198 Cal.App.4th 256, 264.) On November 21, 2006, Monge-Irizarry sold the property to the Harrisons. She retained a life estate on the property, but the grant deed to the Harrisons makes no such reservation. The Harrisons obtained a purchase money finance loan, secured by a first deed of trust against the property that was recorded on November 21, 2006. The deed of trust designates Wilmington Finance, Inc. (Wilmington) as lender, Fidelity National Title as trustee, and Mortgage Electronic Registration Systems, Inc. (MERS) as nominee for lender. In March 2008, Monge-Irizarry initiated a lawsuit against the Harrisons and a lis pendens was recorded. The lawsuit was for rescission of the sales contract, among other causes of action, and sought return of the property. On August 26, 2009, a notice of default and election to sell under the deed of trust was recorded. On January 15, 2010, MERS assigned the note and deed of trust to BONYM as…