Martinez

I.

INTRODUCTION

Virginia Martinez defaulted on her home mortgage loan when she stopped making

payments. To avert foreclosure, she agreed to sell her house in a short sale, but the sale 1 fell through, so her house was sold in a foreclosure. Martinez then sued Respondents,

alleging that they unlawfully foreclosed on her house. The trial court sustained

Respondents’ demurrer without leave to amend, and Martinez appeals. We affirm.

II.

FACTUAL AND PROCEDURAL BACKGROUND

Martinez obtained a mortgage to purchase her home in Chino in 2007. In 2015,

Martinez failed to make mortgage payments and defaulted on the loan. She applied for a

loan modification program twice in 2016, but was denied both times. The only option

she was provided as an alternative to foreclosure was to sell her home in a short sale.

Martinez agreed to a short sale.

1 Respondents are (1) Specialized Loan Servicing, LLC (SLS) and (2) Morgan Stanley Mortgage Loan Trust 2007-7AX, U.S. Bank National Association, as Trustee, Successor in Interest to Bank of America, National Association as Trustee, Successor by Merger to LaSalle Bank National Association, as Trustee. 2 We assume the truth of the following…