De Nunzio v. J.P. Morgan Chase CA2/6

Facts In November 2004 a deed of trust encumbering appellants’ Solvang residence was recorded. The deed of trust secured a $520,000 loan to appellants from Washington Mutual Bank. In 2008 respondent became the successor in interest to Washington Mutual.1 On March 30, 2011, respondent sent an “Annual Escrow Account Statement” to appellants. The statement said that the escrow account “is used to pay

1 In their opening brief, appellants allege that respondent “acquired [Washington Mutual] through an order by the FDIC.” items such as your property taxes and insurance premiums when they are due.” The statement informed appellants that they had an “escrow account shortage” of $19,760.94. By a check dated July 11, 2011, appellants paid the $19,760.94. On July 28, 2011, California Reconveyance Company (CRC), a debt collector, wrote appellants a letter stating that their home loan was delinquent in the amount of $34,388.32 because they had failed to make 11 monthly payments. CRC did not mention the $19,760.94 that appellants had paid to cover the escrow account shortage. On September 20, 2011, appellant Herman De Nunzio sent an email to Ronald Anderson, the manager of respondent’s Santa…