In Re: Byron York Priestley

I. Factual and Procedural Background

A. The Loan History In August 2004, third party Dennis McGaughey (“McGaughey”), Priestley’s stepfather, obtained a loan (the “Loan”) that was secured by a second deed of trust against the property located at 22442 Rippling Brook, Lake Forest, California (the “Property”). In approximately August 2015, 20 Cap purchased the Loan. Although Priestley was never a party to the Loan, Priestley alleges that McGaughey transferred his interest in the Property to Priestley sometime in 2017.1 Priestley has also alleged that he is the assignee of “all choses in action, rights, and claims that McGaughey held against [20 Cap] and is the successor to McGaughey of all claims asserted herein that were otherwise held by McGaughey.” On June 24, 2020, a Trustee’s Sale was held as a result of the admitted – and decade-long – default on the Loan, and 20 Cap acquired the Property. B. The State Court Action On April 10, 2017, McGaughey filed an action in Orange County Superior Court (“OCSC”) against 20 Cap and other defendants, entitled Dennis T. McGaughey v. FCI Lender Services Inc., et al., OCSC Case No. 30-2017-00913685-CU-OR-CJC (the “State Court Action”). …