Kiet

FACTS AND PROCEDURE

The Complaint In April 2002, Countrywide made an adjustable rate real estate loan of $437,750 to Lan Anh Truong (Borrower), evidenced by a promissory note (the Note) and secured by a recorded first deed of trust on residential property located in Fountain Valley. By the time of the foreclosure, BNY was the lender’s assignee via

2 MERS,1 and Litton was the loan servicer. In December 2003, Kiet, who is an attorney, was named beneficiary of a second deed of trust on the property securing a $75,000 note. Kiet alleged that when he learned of Borrower’s March 2006 default on the payments on the loan secured by the first deed of trust, he contacted Litton in August 2006 to advise it of his secured interest in the property. The trustee’s sale was set for December 19, 2008, and the notice of the trustee’s sale set the minimum bid at $559,806, which Kiet alleged was enough to cover both liens. The property was purchased by lender BNY at the trustee’s sale for a full credit bid of $622,136. Kiet’s post-sale requests that his junior lien be satisfied went unanswered by Litton. Kiet alleged Defendants “inflated” the amount of the bid on the property by including amounts…