Vinod Sharma v. Hsi Asset Loan Obligation Trust

BACKGROUND

This is the Sharmas’ second lawsuit alleging wrongful foreclosure and other related claims stemming from the foreclosure and subsequent sale of a single-family home in Elk Grove, California. The Sharmas purchased the property in July 2000 and refinanced in April 2007. A few years later, the Sharmas defaulted on the loan and American Brokers 4 SHARMA V. HSI ASSET LOAN OBLIGATION TRUST 2007-1

Conduit initiated foreclosure proceedings and ultimately sold the property to Deutsche Bank National Trust Company (DBNTC) as Trustee for HSI Asset Loan Obligation Trust 2007-1.

The Sharmas filed their first wrongful foreclosure lawsuit in state court on August 26, 2010, almost immediately after the foreclosure. The state court dismissed that action with prejudice on January 28, 2013, and an appeal was dismissed on April 25, 2013. The Sharmas then vacated the property and it was sold to a third party in December 2013, and sold again in 2016.

The Sharmas filed the instant lawsuit in California state court on July 18, 2019, against HSI Asset Loan Obligation Trust and HSI Asset Securitization Corporation. DBNTC, a party not named in the Sharmas’ lawsuit, removed the lawsuit to…