Matson v. S.B.S. Trust Deed NetworkAnnotate this Case
Plaintiffs Matthew Matson and Matson SDRE Group, LLC purchased a deed of trust at a nonjudicial foreclosure sale. Defendants S.B.S. Trust Deed Network (SBS) was listed as the trustee, and Bank of Southern California, N.A. (BSC) was the beneficiary of the deed of trust. Based on his review of the information on a software program, Matson believed that the loan being foreclosed was a refinance of the original purchase loan, and therefore that it was in first position to the title. He purchased the deed of trust for $502,000 at the foreclosure auction, then learned that the lien was in second position, with a much lower fair market value than the price paid. Plaintiffs sued for rescission of the sale and declaratory relief, relying on Matson's unilateral mistake of fact and the unconscionable price he paid for the deed of trust. The parties filed cross-motions for summary judgment. The trial court granted summary judgment for defendants. Plaintiffs appealed, but finding no reversible error, the Court of Appeal affirmed the judgment.