FACTS/ISSUES: Plaintiff’s applied for a loan modification through their loan servicer, Seterus, Inc. Even though Plaintiffs were in review for a first lien loan modification. Defendants nevertheless maintained 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 §2923.6, which prohibits foreclosure, the recordation of a notice of default or notice of sale when the borrower is in active review for a first lien loan modification.