Shetty

FACTS

The following facts are alleged in the complaint. This lawsuit concerns a condominium in the City of La Habra. The prior owner, S.L., took out a mortgage and deed of trust on the property. Defendant PHH Mortgage Corporation serviced the loan. Defendant MERS is identified as the beneficiary under the deed of trust. MERS assigned the deed of trust to defendant HSBC Bank USA, N.A. (HSBC), which then held the beneficial interest, as trustee, in the deed. As we explain below, the parties agree that MERS played no role in the alleged wrongdoing and that it should be dismissed from the lawsuit. All further references to “defendants” are to HSBC and PHH Mortgage Corporation. In May 2018, the homeowners association for the community where the condominium is located foreclosed on the property. Shetty obtained the property from

2 the homeowners association by way of a grant deed. The grant deed made no mention of the mortgage or deed of trust. In July 2020, defendants recorded a notice of default against the condominium, which listed an amount due of $11,537.25. In February 2021, defendants recorded a notice of trustee’s sale, setting a foreclosure sale date of April 21, 2021. The…