Calvo Has NOT Put to Rest Any Question as to Whether § 2932.5 is Applicable to Deeds of Trust
On September 13, 2011, the California Court of Appeal issued its decision, Calvo v. HSBC Bank , reinforcing the rule that California does not require recordation of an assignment of a deed of trust prior to foreclosure and that Civil Code § 2932.5 is inapplicable to deeds of trust.
The Appellate Court upheld the law , so it seems, and reasoning in Stockwell distinguishing mortgages from deeds of trust. The Court further expanded upon the Stockwell decision by explaining MERS’ statutory and contractual authority to initiate foreclosure on behalf of the investor, HSBC Bank, as Trustee.
The promissory Note is secured by the mortgages deed of trust. The Promise to pay is secured by the lien which attaches to the subject residence. The Deed of Trust is to the recorded Lien on the real property. The Assignment is to give the Deed of trust to another presumed for valuable consideration.
Consider in the Calvo case the appellate courts ruling. The original lender recorded in county records in name of the lender is Countrywide Home Loans recorded 8/28/2006.
Assignment is from assignor to assignee:
Bank of America FKA Countrywide Home Loan LP. In this effort the assignment is from the left hand to the right hand. This in accounting is for purpose of washing assets to reestablish basis in assets.
Where the Assignor is Mers Corp therein occurs the argument for a straw buyer. A STRAW BUYER – Obtaining loans through a straw buyer is not at all legal when the agent and ultimate user of the funds used to defraud the parties when the law expressly prohibits such acts.