Bank of America v. World Trading CA2/1

BACKGROUND

Robert Tieger wholly owns World Trading and Tieger Enterprises, Inc. Tieger Enterprises entered into an agreement to sell a single family residence it owned on Oakwood Avenue in Arcadia (hereafter the Oakwood property) to Victor and Silvia Neander. To satisfy the down payment, Victor’s mother, Donna Mae Neander, executed a deed of trust to a property on Colorado Boulevard in Arcadia (hereafter the Colorado property) in favor of Tieger Enterprises. Donna Mae had previously executed a deed of trust to the Colorado property in favor of Bank of America on an unrelated loan. She later conveyed the Colorado property outright to Tieger Enterprises in exchange for a price reduction on the Oakwood property. On June 16, 2004, Tieger Enterprises conveyed the Colorado property to World Trading. Meanwhile, on December 30, 2003, Bank of America recorded a deed of trust on the Colorado property to secure an unrelated loan to Donna Mae. After the Neanders defaulted on both loans secured by deeds of trust to the Colorado property: the one taken in exchange of the price reduction on the Oakwood property and the preceding loan made to Donna Mae by Bank of America, Bank of America…