Foreclosure Notice of Default Signed By Company "As Trustee" Before It Became Trustee is Valid

In a published opinion dated February 6, 2015, the California Court of Appeal held that a notice of default signed by Aztec Foreclosure Corporation (Aztec) “as trustee” before Aztec was substituted in as the trustee under the deed of trust was valid. The Court of Appeal rejected the borrower’s argument that failure of the original trustee to sign the notice of default “broke the chain of recorded title rendering all subsequent foreclosure proceedings, including the trustee’s sale, void and of no effect.” Even if Aztec lacked authority to sign the notice of default as trustee at the time it took this action, Aztec’s authority was subsequently ratified by the lender when it formally named Aztec as trustee several weeks later. (Ram v. Onewest (2015) 234 Cal.App.4th 1)

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The law firm of Wallace, Richardson, Sontag & Le, LLP represents landlords, property management companies, institutional and private lenders, employers and insurance companies throughout the State of California in real estate, business and employment litigation. The information provided herein is for general interest only and should not be relied upon or construed as legal advice. 

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