Mirtorabi

FACTS

This case involves a condominium in San Pedro (the Property). Plaintiffs Azam and Mo Mirtorabi held a second deed of trust on the Property. They obtained the trust deed from their former attorney in 2008, to repay a debt of some $92,000 he owed them. In May 2010, defendant Action Foreclosure Services, Inc. (AFS), filed a notice of election to sell on behalf of the beneficiary of the first trust deed on the Property. A trustee’s sale was scheduled. Before the sale was held, defendant Red Curb Investments purchased the note for $92,043, on September 9, 2010, and became the beneficiary under the first trust deed. After acquiring the first trust deed, Red Curb deposited $50,000 with AFS, and instructed AFS to halt the sale if the bidding exceeded the full credit amount plus $50,000. The trustee’s sale scheduled for September 13, 2010, was postponed. Trustee’s sales on October 15 and 22, 2010, were halted when the Mirtorabis’ bid of $156,000 exceeded the full credit amount plus $50,000. The Mirtorabis produced evidence of e-mails between Red Curb, AFS, and the auctioneer, suggesting that the auction was postponed whenever interested bidders appeared, to prevent the price from…