Smith v. American Mortgage Network CA2/1

Background Complaint We take the facts from the third amended complaint, which is operative, and from matters properly subject to judicial notice. On December 2, 2006, plaintiff executed a promissory note payable to American Mortgage Network (American Mortgage, the lender), secured by a deed of trust on her residence in Los Angeles. Pursuant to the note, plaintiff promised, in return for a $556,000 loan, to make a payment of principal and interest “to the order of the Lender” on the first day of each month beginning on January 1, 2007, until all principal and interest and any other charges were paid. Plaintiff agreed that if she did not pay the full amount of each monthly payment on the date it was due she would be in default. She agreed that if in the event of default the note holder forbore immediate full payment, the holder would retain the right to demand full payment later if the default persisted. Plaintiff agreed that the lender was permitted to transfer the note and that any transferee would be entitled to receive payments under it.

2 The beneficiary of the trust deed was Mortgage Electronic Registration Systems, 1 Inc. (MERS), American Mortgage’s nominee, and its…