Adams v. Bank of AmericaAnnotate this Case
In 2006, Adams obtained a loan secured by a deed of trust against Vallejo residential property. Adams obtained a loan from an individual, Gallegos, secured by a separate deed of trust recorded against the same property. Adams defaulted on the junior loan, resulting in foreclosure and a trustee’s sale in 2008. Gallegos was the purchaser. The property was still subject to the senior loan; Adams remained the "Borrower,” named on the deed of trust. In 2017, Adams filed for chapter 7 bankruptcy. After her discharge, Adams filed a complaint, alleging “Violations of the Homeowners’ Bill of Rights” (HBOR), based on her 2016-2017 negotiations for a loan modification. She claimed that the defendants recorded notices of default and of trustee’s sale on the senior loan and failed to provide her with a single point of contact while her application was pending. The court granted the defendants judgment on the pleadings.
The court of appeal reversed. While the complaint failed to allege facts sufficient to state a cause of action under the HBOR the trial court abused its discretion when it denied Adams leave to amend. The facts alleged in the complaint together with matters that are subject to judicial notice do not establish that the property is Adams’s principal residence as required under HBOR but there is a reasonable possibility that amendment of the complaint would cure this defect.