SAN FRANCISCO — A special trustee has filed suit against a mortgage company for allegedly wrongfully foreclosing on a property.
3216 Balboa LLC filed a complaint Oct. 5 in U.S. District Court for the Northern District of California against Nationstar Mortgage LLC, alleging that the Texas company breached its duty of good faith and fair dealing.
According to the complaint, the plaintiff alleges that on May 19, 2014, 3216 Balboa LLC's sole managing member, David Rienhart, was named as a special trustee by his former wife, together with Joanna Cheung, who later quitclaimed all of the trust’s interests in the subject property to the plaintiff for the benefit of his children.
However, on Sept. 14, the new trustee that was falsely appointed by a securitization trustee threatened to sell the property at a public auction on Oct.17 unless the plaintiff immediately paid the inflated payoff amount of $471,361.92 to the defendant, thereby causing the plaintiff to suffer monetary damages and harm.
The plaintiff holds Nationstar Mortgage LLC responsible because the defendant had no legal standing or authority to collect money or foreclose under the note/DOT or any other agreement.
The plaintiff requests a trial by jury and seeks declaratory judgment, preliminary and permanent injunction, damages, attorney’s fees and further relief the court deems proper. It is represented by John Holman of Holman & Martin in San Anselmo.
U.S. District Court for the Northern District of California Case number 3:16-cv-05651