June 9, 2010

In a stunning ruling, a California Superior Court has today entered a Restraining Order cancelling and enjoining a trustee’s sale of the borrower’s property one day before the scheduled sale, with the Order compelling Defendants US Bank National Association as Trustee for the Holders of Bear Stearns ARM Trust Mortgage Pass-Through Certificates Series 2006-2, MERS, and ReconTrust Company, N.A. to “promptly” provide to the borrower “all documents pertaining to foreclosure proceedings, trustee’s sales, assignments with respect to Plaintiff’s residence or mortgage, including a copy of the Pooling and Servicing Agreement pertaining to Plaintiff’s mortgage and any and all documents pertaining to any credit enhancements and/or credit default swaps that cover Plaintiff’s mortgage pool”.

This is the first such ruling that we are aware of that orders, at the TRO stage, full production of foreclosure authority and securitization documents from those who instituted the foreclosure. The ruling is in line with the prior foreclosure dismissal orders discussed on this website yesterday which conditioned refiling of a dismissed case on full production of the borrower’s discovery.

The significance of this ruling, especially for foreclosure cases in California, cannot be underestimated or overstated, especially as we commented yesterday that foreclosing parties are regularly reluctant to provide the borrower’s discovery during normal discovery in litigation.

The Complaint, legal Memorandum of Points and Authorities, and other documents were researched and prepared by Jeff Barnes, Esq. The TRO was obtained by local California counsel Alan Geraci, Esq., to whom we give many thanks for his efforts, literally at the last minute.

Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com