Foreclosed Homeowner Can Sue Over Defective Assignment, Court Rules

The California Supreme Court has ruled that a homeowner who lost her home to foreclosure can challenge the defective transfer of ownership of her mortgage, The Intercept's David Dayen reports. The court held that "'a homeowner who has been foreclosed on by one with no right to do so has suffered an injurious invasion of his or her legal rights at the foreclosing entity’s hands."'

The homeowner's mortgage was transferred into a trust by a bankrupt company four years after new loans were no longer supposed to be added to the trust. The Supreme Court ruled that, even though the homeowner was not a direct party to the transfer of ownership, that she could challenge the defects in the assignment of the deed of trust in order to bring an action for wrongful foreclosure.