Banga v. World Savings and Loan Assn

Filed 5/30/06  Banga v. World Savings and Loan Assn. CA1/4

NOT TO BE PUBLISHED IN OFFICIAL REPORTS

California Rules of Court, rule 977(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 977(b).  This opinion has not been certified for publication or ordered published for purposes of rule 977.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION FOUR

            Kamlesh Banga and Madan Lal (the Bangas) appeal from the summary judgment entered in favor of World Savings and Loan Association (World) on their complaint arising out of claims of erroneous reporting to credit reporting agencies that their loan was in foreclosure.  We affirm.

I.  FACTUAL BACKGROUND

A.  Loan History; Initiation of Foreclosure

            In 1989 the Bangas obtained a loan of $171,200 from World to purchase residential property in Vallejo.  They executed a promissory note for that amount, secured by a first deed of trust against the property.

            In 1997 the Bangas became delinquent in their loan repayment causing World to issue a 30-day notice of intent to foreclose on two occasions.  Twice, during that time and at the Bangas' request, World agreed to loan repayment modifications.

            On December 8, 1997, the Bangas made a payment of $1,655.02 which was credited to the November 1997 payment which was past due.  As of January 1, 1998,^[1] the loan was past due for the December 15, 1997 payment.  The Bangas' payment on January 30 was applied to December 1997, leaving the January 15 loan payment due.

            World received the next payment on March 19, check No. 94 for $1,655.02, which World applied to January, leaving the Bangas past due for the February 15 and March 15 payments.  At that point World issued a third 30-day notice of intent to foreclose, indicating that the total amount due was $1,944.87, with payment required by April 19.

            Check No. 94 was returned to World for insufficient funds on April 9, resulting in reversal of the January payment and leaving the Bangas three months in default.  Two days after the April 19 deadline, the Bangas submitted check No. 129 in the amount of $1,944.87.  That check was returned for insufficient funds on April  30.  The Bangas now owed four months of loan payments.  They made another payment on May 14 which was credited to the January and February payments.  The next day World advised the Bangas by letter that the loan was  delinquent and the sum of $1,918.73 was due by May 30 to avoid further late charges.  The Bangas admitted by declaration and on the record that they were in default by that amount.  On May 19 World began the foreclosure process by initiating a foreclosure review checklist and thereafter opening a foreclosure workstation.

            As of May 21 the Bangas were three months delinquent.  On June 12 World sent the Bangas a letter notifying them that their loan had been referred to an â€