May 11, 2020 / 10:46 PM / 19 days ago

California borrowers cannot preemptively sue to block foreclosure -circuit

California law does not allow mortgage borrowers to sue lenders preemptively to stop a foreclosure that has not been initiated, a federal appeals court ruled Monday.

The 9th U.S. Circuit Court of Appeals noted that California’s Supreme Court had not yet decided the question, but that lower-level appeals courts in the state had ruled against preemptive anti-foreclosure lawsuits. The circuit affirmed the dismissal of lawsuits by Bella Perez and Enrique Perez against U.S. Bank NA, Bank of New York Mellon and Mortgage Electronic Registrations Systems Inc (MERS).

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2yPsQyt

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