Cervantes v. Countrywide Home Loans, Inc.

Summarized by Clifford Stevens , Neumiller & Beardslee
14 years 5 months ago

Citation:

2011 DJDAR 13682

Tag(s):

Ruling:

Plaintiffs failed to state a cause of action for wrongful foreclosure when alleging that use of MERS as the named beneficiary caused a split between the deed of trust and note.

Procedural context:

This is an appeal to the Ninth Circuit from the United States District Court for the District of Arizona where the District Court dismissed Plaintiffs' first amended complaint without leave to amend.

Facts:

Plaintiffs entered into home loans with executed deed's of trust naming MERS as the "beneficiary" and as the "Nominee" for the lender and lender's "successors and assigns." Before initiating a non-judicial foreclosure proceeding under Arizona state law against two of the Plaintiffs, MERS recorded documents with the county assigning its beneficial interest in the deeds to a trustee properly appointed by the lender. Plaintiffs filed an action alleging various causes of action and proposed to add a cause of action for wrongful foreclosure.

Judge(s):

Richard C. Tallman; Johnnie B. Rawlinson, and Consuelo M. Callahan, Circuit Judges. Opinion by Judge Callahan.

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