Trustee’s Sale Abolished Borrower’s Debt On Junior Mortgage Loan

Mealey's (June 2, 2022, 2:02 PM EDT) -- SAN FRANCISCO — A federal district court erred in granting summary judgment in favor of a junior mortgage loan servicer in a Fair Credit Reporting Act (FCRA) dispute because the loan servicer erroneously reported that a borrower owed a debt on the mortgage even though it had been abolished by Arizona law when his home was sold at a trustee’s sale, a Ninth Circuit U.S. Court of Appeals panel ruled May 16 in reversing and remanding....