Tervalon

FACTS

The second amended complaint alleges as follows: In April 2007 Kenneth and Marie Tervalon obtained a loan from the Bank of America (BofA) secured by a deed of trust on their residence in Simi Valley, County of Ventura. BofA later attempted to transfer the note into an investment trust. There is, however, no record of any assignment prior to the closing of the trust on September 27, 2007. The attempted assignment was a failed attempt to transfer and securitize the Tervalons' note. The claim of endorsements on the note has been broken and the beneficial interest in the note cannot be proven. The Tervalons fell behind on their payments.1 In August 2011 Quality Loan Service Corporation was substituted as trustee under the deed of trust, and a notice of default was recorded. (BofA and Quality are hereafter collectively "BofA" unless the context indicates otherwise.) BofA intentionally deceived the Tervalons by claiming they would be reviewed for loan modifications. While review was pending, no foreclosure proceedings would be commenced. BofA commenced foreclosure proceedings and caused multiple notices of sale to be recorded. BofA made the representation in order to induce…