Judge: Alison Mackenzie, Case: 23STLC05830, Date: 2024-09-25 Tentative Ruling

Case Number: 23STLC05830    Hearing Date: September 25, 2024    Dept: 55

Tentative

Valdez vs. Home Approval Direct, Inc., et al. 23STLC05830

Intervenor (Real Party in Interest) Flagstar Bank, NA’s Motion to Expunge Notice of Pendency of Action

Background

Plaintiff Marco Joseph Valdez filed this action against Defendants Home Approvals Direct Inc. dba Homefirst Mortgage Bankers and Alexander Kim for cancellation of deed and quiet title with respect to the property located at 1905 East Rogers Street, Long Beach, CA (“Property”). Plaintiff also caused a Notice of Pendency of Action (“Lis Pendens”) to be recorded against the Property.

Intervenor Flagstar Bank, NA (“Flagstar”) has filed a motion to expunge the lis pendens. Plaintiff did not file an opposition.

Judicial Notice

Flagstar’s request for judicial notice of eight recorded documents is granted.

Legal Standard

A lis pendens is an instrument recorded in the office of the county recorder that gives constructive notice of a pending lawsuit affecting title to the real property described in the lis pendens. Gale v. Superior Court (2004) 122 Cal.App.4th 1388, 1395. Where a motion to expunge a lis pendens has been filed, the proponent of the lis pendens carries the burden of establishing by a preponderance of the evidence the probable validity of the real property claims. Code Civ. Proc., §§ 405.30, 405.32. Probable validity means that it is more likely than not that the claimant will prevail on the claim. Id., § 405.3.

Analysis

The judicially noticed documents reflect that: (1) Plaintiff obtained a loan for the Property from Defendant Home Approvals, which was secured by a Deed of Trust for the Property; (2) the loan and Deed of Trust was assigned to Flagstar; (3) Flagstar ultimately foreclosed on the Property after the loan fell into default; and (4) Flagstar is the current owner of the Property.

Plaintiff’s claims in this case center on his allegation that he entered into a private agreement with Defendant Kim, the purported CEO of Defendant Homefirst, that Plaintiff never received the loan and the loan was not in default. Based on those allegations, Plaintiff alleges that the Deed of Trust for the Property should be canceled and he should be declared the owner of the Property because the entire foreclosure process should not have happened.

Plaintiff has the burden of establishing that it is more likely than not that he will prevail on his claims. But Plaintiff has not filed an opposition, let alone put forth any evidence for his claims. The alleged agreement attached to the Complaint does not establish the existence of any modification of the loan because it is only signed by Plaintiff and he could not have unilaterally modified the loan or Deed of Trust. Moreover, as Flagstar notes, the Deed of Trust had been assigned to Flagstar at the time of the purported agreement, which means that Homefirst had no legal ability to modify the terms of the loan. Nor has Plaintiff established that he paid the outstanding debt on the Property, which is required to quiet title. Thus, Plaintiff has not and cannot establish the probable validity of his claims.

Conclusion

The motion to expunge the Lis Pendens on the Property is GRANTED.