Gutierrez

BACKGROUND

In 2000, appellants purchased a property in Newark, California. In 2005, they obtained a revolving line of credit from Fremont Bank in the amount of $89,000 secured by a deed of trust. SN Servicing is the current servicer and ZBS is the current trustee of this deed of trust. In 2006, appellants signed a modification agreement to increase their credit limit to $110,000. At the same time, Fremont Bank recorded another deed of trust for $89,000. According to appellants, this second lien was used to “payoff” the first lien, but the first lien was not closed and continued to accrue fees. When appellants contacted Fremont Bank to ascertain why the first lien was not closed, Fremont Bank refused to reconvey the lien. Appellants allege that the bank now “seeks to foreclose” on this “extinguished” first lien. In June 2020, appellants filed suit against Fremont Bank.1 In July 2020, appellants filed a first amended complaint adding SN Servicing and ZBS as defendants. The trial court ordered appellants to amend again because they had included a quiet title claim but failed to verify the complaint. (Code Civ. Proc., § 761.020.) In December 2020, appellants filed their second…