Shetty v. Mortgage Electronic Registration Systems
Satish Shetty purchased a condominium from a homeowners’ association that had foreclosed on a lien for unpaid dues. When Shetty purchased the property, a preexisting debt—a mortgage loan secured by a deed of trust on the condominium—was in default. He soon received notice of a trustee’s sale. Shetty now sues the beneficiary of the trust deed and its assignee to prevent them from foreclosing on the property.
Shetty has failed to show on appeal that his claims have merit. He is not a bona fide purchaser (BFP) because he purchased the property with constructive knowledge of the senior lien. He has no standing to challenge assignments of the loan instruments because he is not a party to the loan. The trial court properly dismissed his lawsuit after granting summary judgment in favor of respondents.
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