Ferrales

Facts and Procedural History In October 2004 appellant took out a $1,209,600 loan, secured by a deed of trust, to purchase a beach house in Cambria. After appellant defaulted on the 30- year loan, Aurora recorded a notice of default and scheduled an April 9, 2009 trustee's sale. Appellant requested a loan modification and executed a workout agreement providing that appellant would make partial mortgage payments and stay in 1 the home while Aurora reviewed the loan modification application. The workout agreement warned that if a loan modification was not achieved, Aurora would proceed with the foreclosure. Aurora sent a follow-up form letter stating that "we would like to offer you a permanent home retention option." (Emphasis added.) The form letter requested financial information which would be reviewed by Aurora to determine whether appellant qualified for a loan modification. Aurora terminated the work out agreement in 2009 because appellant's monthly housing-to-income ratio was too high to qualify for a loan modification Appellant requested that Aurora re-open his file and executed a second workout agreement on February 22, 2010, acknowledging that $122,631.96 was…