Valladares

FACTS

The responding defendants in this appeal are Capital Alliance Advisors and its loan servicer Calliance Realty Funding. In November 2007, Capital Alliance loaned Leticia Valladares $760,000, secured by a deed of trust on real property (the Property). The promissory note requires repayment by December 1, 2010. Valladares soon defaulted on her monthly payments. She and Calliance entered a modification agreement in December 2008 (the Modification). The Modification recites arrearages of $78,033, dating from March 1, 2008, which were added to the principal balance for a total debt of $838,033. Calliance agreed to temporarily decrease the interest rate and lower Valladares’s payments. In return, Valladares agreed to give the lender title to a vehicle as additional collateral. In consideration for the Modification, Valladares agreed to pay a fee of $7,500. A notice of trustee’s sale was recorded, stemming from Valladares’s second default. The Property was sold at public auction in June 2011. Valladares sued on the theory that respondents lacked standing to foreclose on the deed of trust: they allegedly failed to perfect their security interest in the Property and “cannot establish…