Kiet v. Litton Loan Servicing
The first deed of trust on residential real property was foreclosed upon and bought by the lender at the nonjudicial foreclosure sale for a full credit bid, leaving appellant Tang Kiet as a sold-out junior lien holder. Kiet did not appear at or bid at the trustee’s sale, nor did he otherwise attempt to cure the default on the senior lien. Instead, he filed the instant action against the lenders, Bank of America (as successor to Countrywide Home Loans, Inc. (Countrywide)) and the Bank of New York as Trustee for the Certificate Holders CWL, Inc. Asset-Backed Certificates, Series 2002-03 (BNY), the loan servicer, Litton Loan Servicing, LP (Litton), and Mortgage Electronic Registration Systems, Inc. (MERS) (hereafter collectively referred to as the Defendants unless the context indicates otherwise), seeking to recover from them the amount of his extinguished junior lien.
Kiet appeals from the judgment in favor of the Defendants that followed their successful summary judgment motion. He primarily contends the lender’s full credit bid included amounts the lender was not entitled to add to the secured debt (specifically property taxes and hazard insurance premiums paid by the lender), and included inflated amounts of principal and interest. Kiet urges the amounts improperly included in the lender’s full credit bid constitute surplus sales proceeds that should have been made available to satisfy his junior lien. We reject Kiet’s contentions and affirm the judgment.
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