The court has ruled in favor of Just Mortgage, Inc. (JMI) in a case brought against them by KTDA III Associates. KTDA filed a second amended complaint seeking declaratory relief from J.P. Morgan and reformation against JMI in a case of misinformed deeds.
The conflict originally occurred due to a deed of property. KTDA owned two properties located on 10514 Kalmia Street and on 10516 Kalmia Street. The 10514 property was rented out to a tenant, while the 10516 property was to be sold to Gladys Flores. Flores used promissory notes to pay JMI. The mortgage company recorded a first and second deed of trust against the property. However, the deed contained a legal description of the 10514 property, rather than the 10516 property that was sold to Flores.
When they realized the error, KTDA recorded a correct version of the deed that listed the proper property. However, when Flores defaulted on the loan a year later, JMI started foreclosure proceedings on the 10514 property. JP Morgan bought the deeds to the property when it went on sale. However, the deed reflected the wrong property. JP Morgan went on to evict the tenant that lived on the 10514 property.
KTDA filed a complaint seeking declaratory relief from JP Morgan and for reformation against JMI. Before the trial occurred, KTDA managed to settle with the former company for an undisclosed amount. Chung represented JMI against the appellant and demonstrated to the court how the charges did not hold. After hearing both sides, the court found that with the foreclosure sale, the original deed of trust KTDA sought to reform was not relevant. JMI was awarded over $3,000 including expert fees.
Our Rancho Cucamonga civil litigation attorneys at Chung & Ignacio, Attorneys at Law, have experience in deeds and trusts. We fight aggressively for our clients. If your business is facing charges or complaints, contact our business litigation lawyers today for a free consultation.