CA Court Site Info on Foreclosure

Sunday, May 31, 2015

Assignments Not Required to be Recorded Prior to Foreclosure

"To resolve the prior conflict between courts as to the interpretation of the statute, the California Appellate Court explained its disagreement with the Bankruptcy Court’s decisions as stated in footnote 2 of the Calvo decision:

“We find the analysis in [In re Salazar] unpersuasive . . .
 Holdings of the federal courts are not binding or conclusive 
in California courts though they may be entitled to 
respect and careful consideration [citation omitted].

          A federal bankruptcy court decision interpreting California law, however, is not due the same deference [citation omitted].”
Therefore, the California Appellate Court reasoned that the Salazar and Doble decisions have no legal force or effect as to their interpretation of § 2932.5.

In Calvo, the California Court of Appeal has clarified and reinforced the longstanding rule that Civil Code § 2932.5 is inapplicable to deeds of trust. The assignment of the beneficial interest in the deed of trust does not have to be recorded prior to foreclosure.

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