Barrera

FACTS

The operative complaint alleges the Barreras own a home in San Jose, which they purchased in 2006 with financing from World Savings Bank in the amount of $612,500. At some point thereafter, Wells Fargo acquired their home loan. They eventually fell behind on their home loan payments due to an unexpected financial hardship and filed for bankruptcy in 2011. Under their bankruptcy plan, the Barreras were to repay the arrearages owing on their home loan through the bankruptcy trustee while also directly paying Wells Fargo for further monthly payments as they became due. They voluntarily dismissed their bankruptcy case in February 2016. By that time, the trustee had not yet fully repaid the prepetition arrearages. The Barreras had made only five of the more than 50 monthly payments due for postpetition monthly installments. In April 2016, the trustee under the Barreras’ deed of trust, Clear Recon Corporation (Clear Recon), recorded a notice of default that stated the amount past due as of April 19, 2016, was $167,914.08. It also confirmed the loan was in default for failure to pay the monthly installment due on August 1, 2011, and all subsequent monthly payments. A declaration…