Zavieh

I. FACTUAL AND PROCEDURAL BACKGROUND2

In March 2000, Zavieh acquired property located in Fremont, California (the Property) by gift from her father, James J. Murray. In late 2007, Zavieh obtained a mortgage on the Property from Washington Mutual Bank. The deed of trust named Cal Recon as trustee. In October 2008, Chase informed Zavieh that it had acquired certain Washington Mutual Bank assets, including the right to service and collect payments on her loan. Between June and October 2009, Zavieh and Chase exchanged correspondence regarding a loan modification application. Soon after Zavieh sent Chase additional documentation it requested, including a Home Affordable Modification Program (HAMP) hardship affidavit, she fell behind in her payments. Between February and September 2010, either Murray or Zavieh made seven payments of $1,292 to Chase, under a “Trial Period Plan.” However, in November 2010, Chase told Zavieh it could not offer her a permanent loan modification because it was not approved by the loan’s owner given the net present value calculation, which estimated the cash flow to the owner of the modified and unmodified loan. Zavieh subsequently authorized Murray to…