Judge: Peter A. Hernandez, Case: 23PSCV00006, Date: 2023-09-13 Tentative Ruling

Case Number: 23PSCV00006    Hearing Date: September 13, 2023    Dept: K

Plaintiff Federal National Mortgage Association’s Application for Default Judgment is DENIED without prejudice.

Background   

Plaintiff Federal National Mortgage Association (“Plaintiff”) alleges as follows:

Judy T. Shui fka Judy T. Liu (“Judy”) purchased the property located at 1469 Forest Glen Drive, Unit 192, Hacienda Heights, CA 91745 (“subject property”) from James Baker, Successor Trustee of the John A. Baker and Teresa R. Baker, Irrevocable Trust Dated 09/02/97 (“JB”) in 2003, and acquired title to the subject property via a grant deed recorded January 13, 2003 (“Grant Deed-1”). Through mistake, error and/or inadvertence, the legal description in Grant Deed-1 fails to include certain language. The deed of trust recorded on January 13, 2003 (“DOT”) likewise contains the same erroneous legal description.

On April 7, 2006, Judy, who originally acquired title as a single woman, and Samuel Hsing Shui, Judy’s now-husband, transferred all of their right, title and interest in the subject property to Judy, a married woman as her sole and separate property per a grant deed recorded April 21, 2006 (“Grant Deed-2”). Grant Deed-2 contains the same erroneous legal description identified above. On January 21, 2010, all right, title and beneficial interest in the DOT was assigned to OneWest Bank, FSB by a Corporate Assignment of Deed of Trust recorded March 9, 2010.

On August 30, 2013, all right, title and beneficial interest in the DOT was assigned to Ocwen Loan Servicing, LLC by an Assignment of Deed of Trust recorded October 2, 2013. On May 13, 2019, all right title and beneficial interest in the DOT was assigned to PHH Mortgage Corporation by an Assignment of Deed of Trust recorded May 21, 2019. On June 7, 2022, all right title and beneficial interest in the DOT was assigned to Plaintiff by a Corporate Assignment of Deed of Trust recorded June 10, 2022. Notices of Delinquent Assessment were recorded on October 31, 2006 and May 9, 2008, respectively. The DOT is presently in default due to Judy’s failure to make monthly payments thereunder, but Plaintiff cannot proceed with a nonjudicial foreclosure due to the mistaken legal description stated in Grant Deed-1 and the DOT.

On January 3, 2023, Plaintiff filed a complaint, asserting causes of action against Judy, JB, Countrywood Park Homes Community Association (“HOA”) and Does 1-10 for:

1.                  Reformation of Grant Deed-1 and Deed of Trust

2.                  Declaratory Relief

On March 22, 2023, HOA’s and Judy’s defaults were entered. On April 25, 2023, JB’s default was entered.

An Order to Show Cause Re: Default Judgment is set for September 13, 2023.

Discussion

Plaintiff’s Application for Default Judgment is denied without prejudice. The following defects are noted:

1.                  Plaintiff asserts that the Grant Deed-1 and DOT (referenced above) contain an erroneous legal description of the subject property and seek a judgment reforming and correcting the Grant Deed-1 and the DOT to include certain omitted language. Plaintiff, however, has failed to provide the court with any prior recorded documents in the chain of title for the subject property which reflect the correct legal description. Plaintiff is instructed to provide the court with same.

2.         The proposed judgment contains typographical errors on page 2, line 25 and page 3, line 24 (i.e., “landy” instead of “land”).