FACTS/ISSUES: Plaintiffs applied for a Short Sale through their loan servicer, Select Portfolio Servicing, Inc. (SPS). SPS informed Plaintiffs, in writing, that the Short Sale was approved. Defendants nevertheless proceeded with maintaining a foreclosure sale date. Faced with a foreclosure sale date, Plaintiffs filed the lawsuit to stop the foreclosure.
RESOLUTION: Plaintiffs obtained a Temporary Restraining Order prohibiting the Defendants from foreclosing on Plaintiffs’ property pursuant to California Civil Code §2924.11, which prohibits a foreclosure sale from moving forward if the borrower/Plaintiff is approved for a foreclosure prevention alternative (i.e., loan modification, short sale, etc.).