McDonald

FACTS

On March 19, 2009, Sally DeVincenzo (Sally) and John P. DeVincenzo (John), husband and wife, signed a five-year promissory note stating they would pay Bank3 the principal amount of $1,509,000, with interest. Under the note, monthly installment payments were due, with the final balloon payment due in April 2014. The note provided that, upon default, Bank could accelerate the note and declare all monies payable immediately due and payable. Sally and John secured the note by signing a deed of trust that granted Bank an interest in real property located in Wasco, California (Wasco Property). Also on March 19, 2009, Sally provided additional security for the note by signing a deed of trust for a property located in Shafter, California (Shafter Property). The deed of trust stated Sally was a married woman and described the Shafter Property as Sally’s “sole and separate property.” On a date not specified in the record, Sally sold the Shafter Property. Bank’s separate statement asserts Sally “requested that First California agree to the sale of the

As used in this opinion, the term “Bank” includes First California Bank and its predecessor in interest, San Luis Trust Bank.…