Saticoy Bay, LLC Series 133 McLaren v. Green Tree Servicing LLC

The Supreme Court affirmed the judgment of the district court entering judgment for Green Tree Servicing, LLC in this action to quiet title brought after a homeowners' association (HOA) lien foreclosure sale upon finding that the first deed of trust had not been extinguished because there had been a valid tender, holding that Saticoy Bay LLC Series 133 McLaren took title subject to Green Tree's first deed of trust.

Green Tree was assigned a deed of trust on certain property. The original homeowners because delinquent on their HOA assessments, and the HOA proceeded with a foreclosure sale. The property was sold to Saticoy Bay. Saticoy Bay brought an action to quiet title, and Green Tree counterclaimed for the same. The district court granted summary judgment for Green Tree. On appeal, Saticoy Bay argued that the district court erred in granting equitable relief because the recitals in the foreclosure deed proved that the superpriority portion of the HOA's lien was in default at the time of the sale. The Supreme Court affirmed, holding (1) conclusive recitals of default in a foreclosure deed do not prevent a valid pre-sale tender from preserving a deed of trust; and (2) the valid tender by Green Tree's predecessor preserved the original deed of trust.