Arabia V. BAC — More Leverage For Calif. Loan Servicers
November 9, 2012, 11:34 AM EST
Law360, New York (November 9, 2012, 11:34 AM EST) -- In a recent decision, the California Court of Appeal for the Fourth District held, in the absence of any clear statutory authority, that the beneficiary of a deed of trust may contract its right to judicially foreclose to its loan servicer, which may then validly pursue a judicial foreclosure. In doing so, the Court of Appeal failed to adequately consider the important practical implications of its ruling.
In Arabia v. BAC Home Loans Servicing LP, James Arabia refinanced his home with a mortgage from Countrywide Home...