Guana v. Chase Bank revisited. Declaratory relief bolsters borrower lawsuit.

  The Guana v. Chase ruling recently out of the Third District of Appeal, California, is a small gem of a ruling, if not quite a diamond or even a ruby. As is typical for California appeal wins for borrowers being foreclosed upon in California, this Appellate Court declined to publish the opinion. This is deeply troubling, as it blunts dramatically the uses to which this ruling may be put by case-starved California borrowers looking to put forward case law to support their lawsuits against the institutional players foreclosing illegitmately on their homes. Still.....the takeaway and holding here are as follows: Where a foreclosing party, as Chase here, has not demonstrated they have an interest in the note and associated deed of trust, then wrongful foreclosure as a cause of action may proceed to trial, in cases as here, where the subject property has gone to auction. Furthermore, such a scenario means associated causes of action can also be supported, such as cancellation of instruments and slander of title. Charles and Bill will address this case and some related California-related developments, in their May 9 Broadcast. See Neil's Blog posts for more re Guana.