Wasito v. Specialized Loan Servicing, LLC et al

Filing 32

ORDER Denying Motion for Preliminary Injunction. Signed by Judge Roger T. Benitez on 7/17/2017.(All non-registered users served via U.S. Mail Service)(knb)

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UNITED STATES DISTRICT COURT

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SOUTHERN DISTRICT OF CALIFORNIA

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JANAR WASITO,

Case No.: 3:17-cv-01279-BEN
Plaintiff,

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v.

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ORDER DENYING MOTION FOR
PRELIMINARY INJUNCTION

SPECIALIZED LOAN SERVICING,
LLC; GSAA 5-11; GOLDMAN SACHS
MORTGAGE COMPANY; JPM CHASE
BANK,

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Defendants.

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Plaintiff Janar Wasito, proceeding pro se, filed an ex parte motion for a temporary

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restraining order (“TRO”) to postpone the foreclosure sale on his residence. This Court

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granted the ex parte motion, temporarily restraining Defendants Specialized Loan

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Servicing, LLC (“SLS”) and U.S. Bank, N.A. (“U.S. Bank”) (erroneously sued as GSAA

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5-11) from foreclosing on Plaintiff’s home. The basis for the TRO was two-fold: (1)

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Defendants had not put forth evidence to show that they followed the statutory

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procedures to nonjudicially foreclose; and (2) Plaintiff offered to tender the indebtedness.

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The Court held a preliminary injunction hearing on July 13, 2017.

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Because Plaintiff has not demonstrated a likelihood of success on the merits, the
Court DENIES Plaintiff’s motion for a preliminary injunction.
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BACKGROUND
I.

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Plaintiff’s Loan
In May 2005, Plaintiff obtained a mortgage loan from Residential Mortgage

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Capital (“RMC”) for $650,000, which was reflected in a promissory note secured by a

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deed of trust encumbering the real property at 1703 La Playa Avenue #C, San Diego, CA

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92109. The property is Plaintiff’s primary residence. The Deed of Trust identifies

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Mortgage Electronic Registration Systems, Inc. (“MERS”) as the beneficiary, solely as

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nominee for the lender RMC and its successors and assigns. In 2014, MERS assigned the

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beneficial interest in the Deed of Trust to Defendant U.S. Bank, N.A., as Trustee,

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Successor in Interest to Wachovia Bank, N.A., as Trustee for GSAA Home Equity Trust

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2005-11. Non-party Wells Fargo Bank, N.A. (“Wells Fargo”) was the servicer of the

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loan and, in October 2016, Defendant SLS became the servicer.

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II.

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The Foreclosure Proceedings
Plaintiff has not made a mortgage payment since May 2015. Wells Fargo and SLS

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have reviewed and denied Plaintiff’s applications for a loan modification eight times

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specifically, on or about October 3, 2013, October 23, 2013, February 5, 2016, March 7,

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2016, April 18, 2016, March 28, 2017, April 14, 2017, and June 5, 2017.

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On August 10, 2016, Wells Fargo, as servicing agent for U.S. Bank, N.A., as

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Trustee, Successor in Interest to Wachovia Bank, N.A., as Trustee for GSAA Home

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Equity Trust 2005-11 substituted NBS Default Services, LLC (“NBS”) as the Trustee.

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Subsequently, on August 11, 2016, NBS recorded the Notice of Default (“NOD”).

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NBS’s representative declares that it mailed Plaintiff a copy of the recorded notice via

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certified mail the next day. On May 24, 2017, NBS recorded the Notice of Trustee’s Sale

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(“NOS”). NBS’s representative declares that it mailed Plaintiff a copy of the Notice of

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Sale on May 22, 2017, two days before the recordation date. The foreclosure sale has

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been postponed numerous times and is now set for July 28, 2017.

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III.

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The Lawsuit
Plaintiff filed an amended complaint against SLS, GSAA 5-11, Goldman Sachs

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Mortgage Company (“Goldman Sachs”), and JPM Chase Bank (“Chase”) in San Diego

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County Superior Court on June 7, 2017. The complaint contends that on May 30, 2017,

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Plaintiff first received notice of the foreclosure by finding a letter entitled “Urgent Notice

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of Foreclosure.” The letter was actually an advertisement from a company called The

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Mortgage Fighter. He contends that at no time prior to May 30, 2017 did he receive “any

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email, phone call, or other notice that SLS was attempting a lien or a foreclosure sale.”

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(Am. Compl. ¶ 4). He thought he was still negotiating with SLS for a modification of his

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mortgage.

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He complains that Defendants have not responded to his requests for information

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and have not properly reviewed his requests for a loan modification or evaluated all loss

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mitigation options available to him. Although these allegations are not in his complaint,

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Plaintiff’s main theory is that Wells Fargo improperly denied him a loan modification in

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2013. Because he was allegedly improperly denied a loan modification in September

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2013, he believes he overpaid his monthly mortgage payments until May 2015. At the

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hearing, he asserted that he discovered Wells Fargo’s error in the last month while

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preparing this lawsuit.

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Plaintiff brings claims for: (1) violations of Regulation X, 12 C.F.R. § 1024.1, et

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seq., under the Real Estate Settlement Procedures Act (“RESPA”); (2) violations of

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Regulation Z, 12 C.F.R. § 1026.1, et seq., under the Truth in Lending Act (“TILA”); (3)

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negligence; (4) violations of California Business and Professions Code § 17200; (4) quiet

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title; (5) cancellation of instruments; (6) violations of the Americans with Disabilities Act

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(“ADA”); and (7) declaratory relief.

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Defendants SLS and U.S. Bank removed this action to federal court on June 22,

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2017 based on federal question jurisdiction. Goldman Sachs and Chase did not join in

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the notice of removal because, according to SLS and U.S. Bank, they have not been

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properly joined or served. See 28 U.S.C. § 1446(b)(2) (explaining that only defendants

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properly joined or served must join in the removal).

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On June 28, 2017, Plaintiff filed an ex parte motion for a temporary restraining

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order to postpone the foreclosure sale on his home. (See ECF Nos. 8, 10, 12).1 The

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Court issued a TRO on July 6, 2017. The Court granted Plaintiff’s motion as to

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Defendants SLS and U.S. Bank, but denied it as to Defendants Goldman Sachs and Chase

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as they had not received notice of the application.
The Court heard arguments on Plaintiff’s request for a preliminary injunction on

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July 13, 2017.

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LEGAL STANDARD
“A preliminary injunction is an extraordinary and drastic remedy.” Pom

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Wonderful LLC v. Hubbard, 775 F.3d 1118, 1124 (9th Cir. 2014) (quoting Munaf v.

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Geren, 553 U.S. 674, 689 (2008)). A plaintiff seeking a preliminary injunction must

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establish that he is (1) likely to succeed on the merits, (2) that he is likely to suffer

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irreparable harm in the absence of preliminary relief, (3) that the balance of equities tips

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in his favor, and (4) that an injunction is in the public interest. Winter v. Natural Res.

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Def. Council, Inc., 555 U.S. 7, 20 (2008). The Winter factors are considered in

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conjunction with the Ninth Circuit’s “sliding scale” approach, which provides that “the

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elements of the preliminary injunction test are balanced, so that a stronger showing of

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one element may offset a weaker showing of another.” Vanguard Outdoor, LLC v. City

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of Los Angeles, 648 F.3d 737, 739 (9th Cir. 2011).

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DISCUSSION

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Plaintiff can satisfy only one of the Winter factors—that he is likely to suffer

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irreparable harm. See Jones v. H.S.B.C. (USA), 844 F. Supp. 2d 1099, 1101 (S.D. Cal.

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2012) (losing one’s home may constitute irreparable injury). However, such an injury is

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Plaintiff filed this ex parte motion three times. The Court reviewed and considered all
versions of his motion.
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insufficient to secure an injunction absent a demonstration of likely success on the merits.

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Id.; Dep’t of Parks & Recreation of Cal. v. Bazaar del Mundo Inc., 448 F.3d 1118, 1124

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(9th Cir. 2006) (“[I]f the plaintiff shows no chance of success on the merits, . . . the

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injunction should not issue.”). As discussed below, Plaintiff cannot demonstrate a

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likelihood of success on the merits, that the balance of equities tips in his favor, or that

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the public interest favors enjoining the foreclosure.

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I.

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Likelihood of Success on the Merits
Plaintiff alleges seven claims for relief. The Court addresses each below,

explaining that Plaintiff has not demonstrated a likelihood of success on any of these
claims.

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A. Cancellation of Instruments

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The Court issued the TRO because it found that Plaintiff had raised questions

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going to the merits of whether the Notice of Default and Notice of Trustee’s Sale should

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be cancelled. California Civil Code section 3412 provides that a “written instrument, in

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respect to which there is a reasonable apprehension that if left outstanding it may cause

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serious injury to a person against whom it is void or voidable, may, upon his application,

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be so adjudged, and ordered to be delivered up or canceled.” Cal. Civ. Code § 3412. To

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succeed, Plaintiff must provide facts showing the apparent invalidity of the instrument.

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Watson v. Bank of Am., N.A., No. 16-cv-513-GPC (MDD), 2016 WL 3552061, *19 (S.D.

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Cal. June 30, 2016) (citing Ephraim v. Metro. Trust. Co. of Cal., 28 Cal. 2d 824, 833

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(1946)). At the preliminary stage of the TRO, the Court read Plaintiff’s complaint

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liberally and found that he alleged two procedural violations potentially rendering the

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NOD and NOS invalid. Defendants have now supplemented the record, making clear

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that Plaintiff is not likely to succeed on this claim.

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1. Requirement to Provide NOD and NOS to Plaintiff

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Plaintiff first alleged that he had not been provided with the Notice of Default and

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Notice of Sale. The California Civil Code requires the mortgagee, trustee, or authorized

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agent “provide” the mortgagor or trustor a copy of the recorded notice of default, a copy
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of the recorded notice of sale, and an attached separate summary document of each. Cal.

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Civ. Code § 2923.3(a). Section 2924b explains that the notices must be mailed by

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certified or registered mail and provides deadlines to complete the mailing.

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Defendants demonstrate that they complied with these requirements through a

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declaration from Les Poppitt, Director of Foreclosure Operations at NBS Default

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Services. Poppitt declares that after NBS recorded the Notice of Default on August 11,

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2016, it mailed a copy and the summary document to Plaintiff via certified mail the next

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day. Poppitt attaches an “Affidavit of Mailing,” executed on day of the mailing by the

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individual who made the mailing.

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Poppitt also declares that on May 22, 2017, NBS mailed a copy of the NOS to

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Plaintiff via certified mail. He again attaches an Affidavit of Mailing. Two days later, on

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May 24, NBS recorded the NOS. Oddly, the May 22 Affidavit of Mailing includes the

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May 24 recorded NOS. The Court queried defense counsel about this discrepancy at the

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hearing, and he explained that the wrong exhibit may have been attached to the filing.

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This inconsistency does not warrant an injunction. Defendants have clearly

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“provided” Plaintiff with notice of the recorded NOS by virtue of this lawsuit. Further,

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the California legislature has not authorized injunctive relief under these circumstances.

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The nonjudicial foreclosure statute provides a private right of action to enjoin a non-

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judicial trustee’s sale where a mortgage servicer, beneficiary, trustee, or authorized agent

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materially violates any one of nine specified statutory provisions. Cal. Civ. Code §§

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2924.12(a)(1), 2924.19(a)(1). The particular provisions related to providing the NOD

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and NOS to Plaintiff are not among the specified provisions. Thus, Plaintiff cannot

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receive injunctive relief for technical violations of those sections. See Hinrichsen v. Bank

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of Am., N.A., No. 17-cv-219, 2017 WL 1885788, at *6 (S.D. Cal. May 9, 2017)

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(“Because the legislature deliberately chose to authorize injunctive relief only for

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particular violations it identified, but not for a violation of § 2924(a)(6), there is no

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private right of action for injunctive relief . . . under § 2924(a)(6).”).

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Finally, Poppitt declares that on May 25, 2017, NBS posted a copy of the NOS on

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the front door of Plaintiff’s condo complex and in the Superior Court. And on May 24,

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May 31, and June 7, 2017, NBS published the NOS in The Daily Transcript. These

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publications comply with the requirements of California Civil Code section 2924f.

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2. Requirement to Conduct Pre-Foreclosure Outreach

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Plaintiff also alleged that he was not contacted prior to the recording of the NOD.

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California’s nonjudicial foreclosure scheme prohibits a mortgage servicer, mortgagee,

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trustee, beneficiary, or authorized agent from recording a notice of default until 30 days

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after the servicer has contacted the borrower in person or by telephone “to assess the

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borrower’s financial situation and explore options for the borrower to avoid foreclosure.”

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Cal. Civ. Code §§ 2923.5, 2923.55.

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Defendants submit a declaration from Mark McCloskey, Assistant Vice President

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of SLS, to demonstrate compliance with the outreach requirements. McCloskey declares

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that a representative of Wells Fargo, the servicer at the time, called Plaintiff by telephone

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on October 10, 2014, November 4, 2014, November 10, 2014, November 20, 2014, and

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December 2, 2014 to discuss foreclosure prevention alternatives.2 During the November

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10 call, Wells Fargo offered to conduct a secondary review of Plaintiff’s loan

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modification application, which had been denied a year earlier in October 2013. Wells

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Fargo asked for additional documents to conduct the review. During that call, the

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representative also provided Plaintiff with the telephone number for the Department of

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Housing and Urban Development.

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On or about December 18, 2014, the representative executed a Declaration of

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Compliance to evidence Wells Fargo’s compliance with the outreach requirements. The

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Declaration of Compliance is attached to the Notice of Default. At no time prior to the

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When SLS became the servicer of the loan, it acquired all of Wells Fargo’s servicing
records and integrated them into its own records. (McCloskey Decl. ¶ 4).
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execution of the Declaration of Compliance did Plaintiff provide the requested

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documents.

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On this record, Defendants have demonstrated compliance with the outreach

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requirements. The statute only requires contact and some analysis of the borrower’s

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financial situation, not an affirmative modification of the loan. See Daveport v. Litton

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Loan Servicing, LP, 725 F. Supp. 2d 862, 877 (N.D. Cal. 2010).

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In conclusion, Defendants have demonstrated compliance with the two alleged

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procedural violations. As such, Plaintiff has not demonstrated the invalidity of the NOD

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or NOS, and his claim for cancellation of instruments is likely to fail.

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3. Claims Under Regulation X and Regulation Z
Plaintiff’s claims under Regulation X of RESPA and Regulation Z of TILA are

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premised on SLS’s and non-party Wells Fargo’s purported failures to respond to his

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written Requests for Information (“RFI”) and a Notice of Error (“NOE”) by the statutory

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deadline.

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These claims do not support Plaintiff’s request for an injunction. Injunctive relief

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may only be awarded if the movant is entitled to such relief. Winter v. Natural Res. Def.

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Council, Inc., 555 U.S. 7, 22 (2008). Under these federal statutes, a plaintiff’s relief is

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limited to monetary damages. See 15 U.S.C. §§ 1640(a), 2605(f); see also Tarrolly v.

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MUFG UnionBank N.A., No. CV 15-02540, 2015 WL 12659909, at *5 (C.D. Cal. May

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21, 2015) (“Even if Plaintiffs were successful on their RESPA claims, an injunction

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preventing the foreclosure sale would not be available.” (citing cases)). Thus, Plaintiff is

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not entitled to injunctive relief on these claims.

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Furthermore, regardless of the availability of injunctive relief, Plaintiff has not

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demonstrated a likelihood of success on the merits. To begin, it is unclear which section

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of TILA or Regulation Z that Plaintiff contends Defendants violated. He cites to 12

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C.F.R. § 1026.36, but he has not alleged any facts to permit the Court to infer a violation

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of that section.

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His claims focus on Regulation X, which details procedures a servicer must

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comply with to respond to a RFI or NOE. See 12 C.F.R. §§ 1024.35, 1024.36. Plaintiff

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claims that SLS failed to respond to his RFIs and NOE by the statutory deadlines. But

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Defendants provide SLS’s letters responding to Plaintiff’s RFIs and NOE, and their

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responses are within the statutory time limits. The response letters provide some

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information and state that other requested information would not be forthcoming because

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Plaintiff’s requests were too broad or sought proprietary information. See 12 C.F.R. §

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1024.35(e)(4), (g) (servicer not required to provide proprietary documents or respond to

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overbroad notices of error); 12 C.F.R. § 1024.36(f) (servicer not required to provide

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proprietary documents or respond to overbroad requests for information). Plaintiff offers

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no argument why these responses violate RESPA.

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4. Negligence
Plaintiff brings a negligence claim for SLS’s and non-party Wells Fargo’s alleged

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failure to timely acknowledge and respond to his RFIs and NOE. He claims that SLS and

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Wells Fargo had a duty to exercise reasonable care in processing and reviewing his RFIs

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and NOE. (Am. Compl. ¶ 44). Thus, Plaintiff premises the duty of care on the statutory

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duties imposed on servicers by Regulation X of RESPA.

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Plaintiff cannot succeed on his request for injunctive relief on this claim. Because

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RESPA does not permit injunctive relief, Plaintiff cannot avoid that limit by pleading a

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negligence claim predicated on a RESPA violation. See Laine v. Wells Fargo Bank &

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Co., No. C 13-4109, 2014 WL 12579637, at *1 (N.D. Cal. Jan. 9, 2014) (holding that

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plaintiff may not seek injunctive relief through a negligence claim based on a RESPA

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violation because RESPA does not allow injunctive relief). Moreover, a negligence

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claim based on a RESPA violation likely fails on the merits for the same reasons

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discussed in the section above.

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5. § 17200 Violation
Plaintiff’s claim under section 17200 of the California Business & Professions
Code (i.e., California Unfair Competition Law (“UCL”)) alleges that Defendants have
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engaged in unfair, fraudulent, and unlawful business practices in connection with

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servicing his loan, processing his requests for alternatives to foreclosure, and proceeding

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with the foreclosure of his home. (Am. Compl. ¶ 53). He contends the unfair business

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practices include but are not limited to (1) negligently reviewing his loan modification

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application, (2) failing to evaluate him for all loss mitigation options and notify him

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appropriately, (3) improperly instituting foreclosure proceedings, (4) concealing the

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nature of certain fees on his account, (5) clouding title to his property, and (6) foreclosing

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without legal authority. (Id.)

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The UCL prohibits “any unlawful, unfair or fraudulent business act or practice.”

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Cal. Bus. & Prof. Code § 17200. “A plaintiff alleging unfair business practices under

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[the UCL] must state with reasonable particularity the facts supporting the statutory

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elements of the violation.” Khoury v. Maly’s of Cal., Inc., 14 Cal. App. 4th 612, 619

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(1993). Plaintiff has not met this standard. See Watson, 2016 WL 3552061, at *16

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(holding that plaintiff inadequately pled a UCL claim based on the exact same allegations

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that appear in Plaintiff’s amended complaint). Plaintiff’s allegations are conclusory and

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do not provide facts to support a UCL claim. He lumps all Defendants together and fails

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to specify which Defendant committed which act. He has not stated with particularity the

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circumstances constituting fraud. See id. at *17 (allegations of fraud, including a claim

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under the “unfair” prong based on fraudulent conduct, must comply with the heightened

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pleading requirements of Rule 9(b)). Nor has he demonstrated a likelihood of success on

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a viable antecedent claim. See id. at *16 (a claim under the “unlawful” prong requires a

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viable antecedent claim). Based on the evidence provided by Defendants, Defendants

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have legal authority to foreclose, have followed the statutory procedures, and have

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evaluated Plaintiff for loan modifications multiple times. Plaintiff has not demonstrated a

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likelihood of success on this claim.

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6. Quiet Title
Plaintiff seeks to quiet title to his property. Under California law, to state a claim
for quiet title, a plaintiff must allege in a verified complaint: (1) the property’s legal
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description and its street address or common designation; (2) Plaintiff’s title and the basis

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of the title; (3) the adverse claims to the title against which a determination is sought; and

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(5) a prayer for the determination of the plaintiff’s title against the adverse claims.

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Additionally, “a plaintiff seeking to quiet title in the face of a foreclosure must allege

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tender or an offer of tender of the amount borrowed.” Watson v. Bank of Am., N.A., No.

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16-cv-513-GPC (MDD), 2016 WL 3552061, *19 (S.D. Cal. June 30, 2016) (citing

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Arnolds Mgmt. Corp. v. Eischen, 158 Cal. App. 3d 575, 578 (1984)); Sipe v. McKenna,

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88 Cal. App. 2d 1001, 1006 (2d Dist. 1948) (“A party may not without payment of the

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debt, enjoin a sale by a trustee under a power conferred by a deed of trust, or have his

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title quieted against the purchaser at such sale.”).

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Plaintiff has not demonstrated a likelihood of success on his quiet title claim.

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Plaintiff’s complaint is not verified and is wholly conclusory. Importantly, Plaintiff

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admitted that he cannot tender the indebtedness. Plaintiff contends that he need only

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allege a credible offer of tender and not actually tender the debt. At the hearing, Plaintiff

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argued that his statement in the amended complaint that “Plaintiff[] ha[s] the present

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ability to tender the indebtedness and hereby offer[s] to tender such amount” constitutes a

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credible offer of tender. He further argues that he is excused from tendering because he

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disputes the amount owed.

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The Court acknowledges that in some foreclosure cases, courts in this Circuit have

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only required a credible tender offer or, in certain limited circumstances, have excused

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the tender requirement. See Kimball v. Flagstar Bank F.S.B., 881 F. Supp. 2d 1209, 1220

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(S.D. Cal. 2012) (“In order to allege a claim to quiet title, Plaintiff must allege tender or

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offer of tender of the amounts borrowed.”). But see Hamilton v. Bank of Blue Valley, 746

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F. Supp. 2d 1160, 1170 (E.D. Cal. 2010) (“It is settled in California that a mortgagor

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cannot quiet his title against the mortgagee without paying the debt secured.” (citing

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Shimpones v. Stickney, 219 Cal. 637, 649 (1934)). However, Plaintiff has neither

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demonstrated a “credible” offer nor a valid excuse. As this case is at the preliminary

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injunction stage, Plaintiff must show a likelihood of success on the merits and cannot rely
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on his pleadings. He has not done that. Plaintiff’s tender allegation is completely

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conclusory. He has not shown that he has the funds to tender the debt or that some other

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entity, like a surety, has undertaken performance of his obligations. See Kimball, 881 F.

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Supp. 2d at 1222-23 (plaintiffs did not adequately allege ability to tender where they

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failed to provide any facts demonstrating they had the financial resources or could readily

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obtain the amount due). Absent such proof, Plaintiff’s generic statement of a tender offer

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is insufficient for the Court to exercise its equitable powers and enjoin an otherwise

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legitimate foreclosure sale. See Karlsen v. Am. Sav. & Loan Ass’n, 15 Cal. App. 3d 112,

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118-19 (1971) (holding that generic statements in complaint did not constitute tender)

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(“The basic rule is that an offer of performance is of no effect if the person making it is

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not able to perform. Simply put, if the offeror is without the money necessary to make

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the offer good and knows it, the tender is without legal force or effect.”).

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Plaintiff’s argument that he need not tender because he disputes the amount owed

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is without legal support. While there is an exception to the tender requirement if the

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borrower’s action attacks the validity of the underlying debt, Lona v. Citibank, N.A., 202

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Cal. App. 4th 89, 112-13 (2011); Stockton v. Newman, 148 Cal. App. 2d 558, 564 (1957)

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(trustor sought rescission of the contract to purchase the property and the promissory note

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on the grounds of fraud), Plaintiff does not attack the validity of the debt. He contests the

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amount owed but not the fact of the debt. Plaintiff is not excused from the tender

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requirement. See Burns v. HSBC Bank USA, No. 12-01748, 2013 WL 12132062, at *6

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(C.D. Cal. June 10, 2013) (plaintiffs not excepted from tender rule where they did not

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dispute the debt itself).

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7. ADA Violation
Plaintiff pleads an ADA violation because “Defendants have failed to adequately

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accommodate” his disabilities. (Am. Compl. ¶ 58). Plaintiff has not demonstrated a

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likelihood of success on this claim. He does not identify which provision of the ADA

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Defendants allegedly violated, and his allegations of a violation are completely

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conclusory. Plaintiff has not alleged any incident where he was denied appropriate
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accommodations, nor has he explained a causal connection between his disabilities and

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Defendants’ conduct.

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8. Declaratory Relief

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Plaintiff has not shown a likelihood of success on this claim. Plaintiff’s

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declaratory relief claim is duplicative of his other claims, and he has not demonstrated a

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viable underlying claim. Shaterian v. Wells Fargo Bank, N.A., 829 F. Supp. 2d 873, 888

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(N.D. Cal. 2011) (“[The declaratory relief claim] is ultimately a request for relief, and

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[Plaintiff] is not entitled to such relief absent a viable underlying claim.”).

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II.

Balance of Equities
If the sale occurs, Plaintiff will lose his home. But this is not the Court’s only

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consideration. Plaintiff has not demonstrated a likelihood of success on the merits. He

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admits that he has not made a loan payment in over two years, that he has been reviewed

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and denied loan modifications several times, and that he cannot tender the indebtedness.

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The balance of equities does not favor Plaintiff. See Tarrolly, 2015 WL 12659909, at *8

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(finding that equities favored defendants where plaintiff had been afforded loan

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modification at least twice); Haffeman v. Wells Fargo, No. 12-cv-00046, 2012 WL

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827034, at *4 (S.D. Cal. Mar. 9, 2012) (declining to issue TRO and holding that balance

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of equities did not favor plaintiffs where they could not tender, even though the court

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identified technical violations of the notice requirements).

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III.

Public Interest

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In this case, an injunction is not in the public interest. While the public has an

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interest in ensuring that foreclosures are done properly, Plaintiff has made no showing that

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any impropriety occurred here. On the other hand, the public also has an interest in

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resolving in-default loans affecting home values and banks. Enjoining a facially legitimate

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foreclosure sale is not in the public interest.

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CONCLUSION
While the Court is sympathetic to the loss of Plaintiff’s home, it would be
inequitable to issue a preliminary injunction under the circumstances of this case.
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3:17-cv-01279-BEN

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Plaintiff has not shown on this record that he is likely to succeed on the merits, that the

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balance of hardships tips in his favor, or that the public interest favors enjoining the

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foreclosure. The Court DENIES the motion for a preliminary injunction.

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IT IS SO ORDERED.

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Dated: July 17, 2017

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3:17-cv-01279-BEN