Yue

BACKGROUND

I. The Complaint On April 12, 2019, Yue filed a verified complaint for wrongful foreclosure and other causes of action against Mahagama and two other named defendants. The complaint alleges that in 1989, Yue recorded his interest in the Oakland property, which he co-owned with his then-wife, known today as Patricia Jiang. When the two divorced in 1998, Yue was taken off the title. However, Yue and Jiang remained amicable and a grant deed recorded two years later restored Yue to half ownership. On May 6, 2015, without Yue’s knowledge, Jiang took out a second mortgage in the amount of $350,000 and a third mortgage of $135,000, both of which were secured against the Oakland property. The second position deed of trust was held by a Stuart Herman, with Mahagama holding the third position. To arrange the loan, Mahagama hired Olympia Financial Mortgage, Inc. (Olympia), and to insure title to the Oakland property, he contracted with Fidelity National Title Company (Fidelity). The grant deed and deed of trust recorded in connection with Mahagama’s loan make no mention of Yue’s interest in the property. After Jiang fell behind on the loan payments, an August 31, 2018 Notice of…