Every week: one real lawsuit filed over a California foreclosure, taken apart.
The File
Case: Shawn and Sylver Daniel v. Nationstar Mortgage
Court: Alameda County Superior Court
Filed: August 13, 2026. Represented by counsel.
Property: Single-family property, Oakland.
Loan: First lien. $412,250, recorded August 2007, matures August 1, 2037.
Claims: Two. Recording a sale while a loan modification application was pending, and unfair business practices.
Relief sought: An order to show cause on an injunction, compensatory damages, attorney’s fees and costs.
Exhibits attached: None.
The Timeline
8/9/2007. A $412,250 first deed of trust records for a loan from World Savings Bank. The two plaintiffs, husband and wife, are the borrowers.
2/15/2017. A loan modification agreement records. The complaint alleges a bank modified the loan.
5/2/2024. The Notice of Default records. It states an installment due 8/1/2023 and the later installments went unpaid, with $32,373.27 past due as of 5/1/2024.
8/2/2024. The Notice of Trustee’s Sale records. It sets the sale for 8/27/2024.
10/15/2024. The borrowers allege a company they hired submitted a complete loan modification application, when the sale was set for 10/29/2024.
10/29/2024. The trustee holds the sale. The foreclosing beneficiary takes the property with a credit bid equal to the debt.
11/14/2024. The Trustee’s Deed Upon Sale records, conveying the property to the foreclosing beneficiary.
8/13/2026. The complaint is filed, 637 days after the trustee’s deed recorded.
The Money
$412,250.00. Original loan amount, per the deed of trust recorded August 9, 2007.
$32,373.27. Past-due amount stated on the Notice of Default, as of May 1, 2024.
$432,024.76. Unpaid debt, and the amount the foreclosing beneficiary paid at the sale, per the recorded Trustee’s Deed Upon Sale.
No damages figure. The complaint states no dollar amount of loss.
Claim 1. Dual Tracking: No Sale While a Complete Modification Application Is Pending (§ 2923.6(c) or § 2924.18)
The borrowers say a company they hired applied for a loan modification 14 days before the sale. The sale ran on its scheduled date, and the trustee’s deed recorded 16 days later.
What the statute requires
If a borrower submits a complete application for a first lien loan modification at least five business days before a scheduled sale, the servicer cannot hold the sale while the application is pending, until the borrower receives a written determination.
What the borrowers allege
They allege a company they hired submitted a complete application on or around October 15, 2024, when the sale was set for October 29, 2024. They plead the submission on information and belief.
They allege they received no letter asking for more information or denying the application, and that they believed the sale would be postponed. They allege the sale ran as scheduled and that the servicer violated both sections by holding it while the application was pending.
What the record shows
The complaint attaches no exhibits, so no application, confirmation, or correspondence is attached.
The Trustee’s Deed Upon Sale states the trustee sold the property at public auction on October 29, 2024, and the foreclosing beneficiary paid $432,024.76 for a debt of $432,024.76. It recorded November 14, 2024.
Claim 2. Unfair Business Practices (Bus. & Prof. Code § 17200 et seq.)
The borrowers base this claim on the same two sections pleaded in Claim 1.
What the statute requires
The unfair competition law covers business practices that are unlawful, unfair, or fraudulent.
What the borrowers allege
They allege the servicer’s violations of §§ 2923.6(c) and 2924.18(a) are unfair business practices. They allege they lost money and property, suffered emotional distress, and lost their home. They seek restitution, disgorgement, costs, and attorney’s fees.
What the record shows
The Trustee’s Deed Upon Sale records the transfer of the property to the foreclosing beneficiary on November 14, 2024. The complaint states no dollar amount of loss or restitution.
🔒 Paid below: the takeaway and three lessons for lenders.
