Sullivan v. Washington Mutual Bank FA et al

Filing 172

ORDER EXTENDING DEADLINE TO COMPLETE THE ORIGINATION AND CLOSING OF THE NEW LOAN TO 1/31/16 filed by JP Morgan Chase Bank, California Reconveyance Company. Further CMC set for 2/11/16 at 10:30 a.m. Signed by Judge Edward M. Chen on 12/1/15. (bpf, COURT STAFF) (Filed on 12/2/2015)

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JOHN M. SORICH (CA Bar No. 125223)
[e-mail]
SHERI M. KANESAKA (CA Bar No. 240053)
[e-mail]
PARKER IBRAHIM & BERG LLC
695 Town Center Drive, 16th Floor
Costa Mesa, California 92626
Tel: [phone]
Fax: [phone]

Attorneys for Defendants
JPMORGAN CHASE BANK, N.A.,
7 CALIFORNIA RECONVEYANCE COMPANY
and U.S. BANK NATIONAL ASSOCIATION, as
8 Trustee, etc.
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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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KATY SULLIVAN, also known as
KATY MARIE SULLIVAN,

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Plaintiff.

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v.

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WASHINGTON MUTUAL BANK, FA,
JPMORGAN CHASE BANK, National
Association, BANK OF AMERICA,
18 national Association. CALIFORNIA
RECONVEYANCE COMPANY; and
19 Does 1 through 50, inclusive,
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Defendants.

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CASE NO.: CV 09-2161 EMC
Assigned: Hon. Edward M. Chen
JOINT STATUS REPORT
FOLLOWING OCTOBER 1, 2015
HEARING ON ORDER TO SHOW
CAUSE RE SETTLEMENT AND
REQUEST FOR EXTENSION OF
TIME TO FUND NEW LOAN
ORDER

Date: December 1, 2015
Time: N/A
Place: Ctrm 5
450 Golden Gate Ave.
San Francisco, CA 94102

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TO THE HONORABLE EDWARD M. CHEN, UNITED STATES DISTRICT

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COURT JUDGE:

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Following the October 1, 2015, continued hearing on the Order to Show Cause

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dated July 17, 2015, as to why the terms of the settlement should not be enforced, the

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parties submit this report regarding activities undertaken to obtain the new loan since

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the October 1st hearing and the October 23rd joint status report.
{00504667.DOCX 5}

2003.0011

NOVEMBER 2015 STATUS REPORT

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The parties continue to make progress towards generating the new loan

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pursuant to the settlement terms and conditions. Specifically, on or about November

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5th, Chase sent Ms. Sullivan a preliminary loan origination “packet” (required by law)

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which includes disclosures regarding privacy policies and rights, mortgage loan

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product information, estimated escrow amounts, and a draft uniform residential loan

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application with information provided by Ms. Sullivan. On November 9th, Ms.

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Sullivan advised Mr. Sorich that she received the documents on November 6th and that

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there were some errors in the draft uniform residential loan application but she would

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provide specific information after reviewing the documents more thoroughly. On

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November 9th, Mr. Sorich acknowledged receipt of Ms. Sullivan’s November 9th

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correspondence and advised that in addition, the CC&R’s require a master insurance

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policy for the two condominium units but the insurance company advised Chase that

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only a basic homeowner’s policy was in place. On November 12th, Ms. Sullivan

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advised Mr. Sorich that she was working on changing the policy to a master policy for

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the HOA. On November 12th, Ms. Sullivan also advised Mr. Sorich of the specific

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errors on the application that needed to be revised or updated. Chase is currently

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working on implementing and verifying these changes. On November 20th, Ms.

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Sullivan advised that she obtained the HOA Master Policy to replace the homeowner’s

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policy.

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However, an unforeseen issue arose with respect to title of the property. In

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conjunction with originating the new loan, Chase received a preliminary title report

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from the title company. A true and correct copy of the 2015 preliminary title report is

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attached hereto and incorporated herein by reference as Exhibit 1. The preliminary

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title report discloses a prior lien against the property. This lien clouds title and may

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delay issuance of a new loan. The lien relates to a $50,000 loan issued in 2005 to Ms.

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Sullivan and Stefan T. Welter. A true and correct copy of the recorded deed of trust

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for the 2005 loan is attached hereto and incorporated herein by reference as Exhibit 2.

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Chase was previously unaware of this encumbrance because the title policy for the
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2003.0011

NOVEMBER 2015 STATUS REPORT

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2006 loan does not reflect this encumbrance against title to the property. A true and

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correct copy of the title policy for the 2006 loan is attached hereto and incorporated

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herein by reference as Exhibit 3. Chase believes that the 2006 loan was intended to,

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or did, pay off the $50,000 loan but the title company inadvertently failed to reconvey

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the deed of trust. Chase believes the beneficiary of the 2005 loan as identified in the

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deed of trust, National City Bank, is now defunct and that PNC Bank is the successor-

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in-interest. Chase is working with the title company and may need to reach out to

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PNC Bank to resolve this cloud on title. On November 17th, Mr. Sorich advised Ms.

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Sullivan of this issue, and provided responses to the questions and issues raised in Ms.

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Sullivan’s November 12th correspondence. On November 19th, Ms. Sullivan sent Mr.

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Sorich two documents from National City regarding an account ending in 4519. The

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April 19, 2006, document states that the payoff balance for the loan as of April 28,

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2006, is $149,966.87. The August 2, 2006, document states that the account was

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closed and had a payoff amount of $0.00. True and correct copies of the National City

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documents provided by Ms. Sullivan are attached hereto and incorporated herein by

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reference as Exhibit 4. It is not entirely clear whether the account ending in 4519

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relates to the existing lien on the property because the deed of trust states that the

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maximum amount secured shall not exceed $50,000, and because the deed of trust

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does not appear to reflect a loan number. On November 20th, Ms. Sullivan advised

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that she authorized the title company to determine whether the National City deeds of

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trust were released.

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{00504667.DOCX 5}

2003.0011

NOVEMBER 2015 STATUS REPORT

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Chase and Ms. Sullivan have been cooperating in efforts to obtain and provide

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the necessary information to generate the new loan and to clear title to the property.

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In light of the parties’ efforts and the title issues, the parties respectfully request an

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extension of time of the Court’s December 1st deadline to complete the origination and

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closing of the new loan to January 31, 2016.

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DATED: November 24, 2015

Respectfully submitted,

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PARKER IBRAHIM & BERG LLC

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By: /s/ Sheri M. Kanesaka
JOHN M. SORICH
SHERI M. KANESAKA
Attorneys for Defendants

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DATED: November 24, 2015

By: /s/ Katy Sullivan
KATY SULLIVAN also known as
KATY MARIE SULLIVAN

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. Chen

dward M

Judge E

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IT IS SO ORDERED. A further CMC is set
for 2/11/16 at 10:30 a.m. An updated joint
CMC statement shall be filed by 2/4/16.
Parties shall file a joint statement with this
Court if the loan is closed before the 2/11/16
CMC. Otherwise, parties must appear in person
on 2/11/16.
____________________________________
S DISTRICT
TE
C
TA
Edward M. Chen
U.S. District Judge
ED
S

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D IS T IC T O
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{00504667.DOCX 5}

2003.0011

NOVEMBER 2015 STATUS REPORT

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PROOF OF SERVICE

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STATE OF CALIFORNIA, COUNTY OF ORANGE

Katy Sullivan v. Washington Mutual Bank, et al.
USDC Northern Case No.: 3:09-cv-02161-EMC

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I am employed in the County of Orange, State of California. I am over the age of 18 years
and not a party to the within action. My business address is Parker Ibrahim & Berg LLC, 695
Town Center Drive, 16th Floor, Costa Mesa, California 92626.

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On November 24, 2015, I served the foregoing document described as JOINT
STATUS REPORT FOLLOWING OCTOBER 1, 2015 HEARING ON ORDER
TO SHOW CAUSE RE SETTLEMENT AND REQUEST FOR EXTENSION
8 OF TIME TO FUND NEW LOAN on the interested parties in this action.
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by placing the original and/or a true copy thereof enclosed in (a) sealed envelope(s),
addressed as follows:

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SEE ATTACHED SERVICE LIST
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BY REGULAR MAIL: I deposited such envelope in the mail at 695 Town Center Drive,
16th Floor, Costa Mesa, California 92626. The envelope was mailed with postage thereon
fully prepaid.

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I am “readily familiar” with the firm’s practice of collection and processing correspondence
for mailing. It is deposited with the U.S. Postal Service on that same day in the ordinary
course of business. I am aware that on motion of the party served, service is presumed invalid
if postal cancellation date or postage meter date is more than one (1) day after date of deposit
for mailing in affidavit.

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BY THE ACT OF FILING OR SERVICE, THAT THE DOCUMENT WAS
PRODUCED ON PAPER PURCHASED AS RECYCLED.

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BY FACSIMILE MACHINE: I Tele-Faxed a copy of the original document to the above
facsimile numbers.

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BY OVERNIGHT MAIL: I deposited such documents at the Golden State Overnight or
Federal Express Drop Box located at 695 Town Center Drive, 16th Floor, Costa Mesa,
California 92626. The envelope was deposited with delivery fees thereon fully prepaid.

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BY CM/ECF ELECTRONIC DELIVERY: In accordance with the registered case
participants and in accordance with the procedures set forth at the Court’s website
www.ecf.cacd.uscourts.gov

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(Federal) I declare that I am employed in the office of a member of the Bar of this Court, at
whose direction the service was made.
Executed on November 24, 2015, at Costa Mesa, California.

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/s/ Heather Kane

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Heather Kane

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{00504667.DOCX 5}

2003.0011

PROOF OF SERVICE

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SERVICE LIST

Katy Sullivan v. Washington Mutual Bank, et al.
USDC Northern Case No.: 3:09-cv-02161-EMC

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Katy M. Sullivan
2628 Sutter St., B
San Francisco, CA 94115

Tel: [phone]
[e-mail]
Pro Per

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{00504667.DOCX 5}

2003.0011

PROOF OF SERVICE