The following excerpt is from Scheuerman v. PHH Mortg. Corp., Case No.: 3:19-cv-02396-WQH-AHG (S.D. Cal. 2020):
Wrongful foreclosure is an equitable claim "to have the sale set aside and to have the title restored." Ram v. OneWest Bank, FSB, 234 Cal. App. 4th 1, 10-11 (2015) (citation omitted). Three elements must be proven: "(1) the trustee ... caused an illegal, fraudulent, or willfully oppressive sale of real property pursuant to a power of sale in a ... deed of trust; (2) the party attacking the sale suffered prejudice or harm; and (3) the trustor ... tenders the amount of the secured indebtedness or was excused from tendering." Id. at 11 (alterations in original) (citation omitted). The prejudice or harm element is met only if the plaintiffs demonstrate "that, but for a statutory violation, the sale would not have happened and they would still possess the property." Id. at 23.
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.