Automated Summary
Key Facts
Dion Reif filed a lawsuit against NewRez, LLC regarding a mortgage foreclosure dispute involving property at 13244 Country Heights Drive, Penn Valley, California. Reif purchased the property on June 14, 2022, and a forbearance agreement ended on October 1, 2025. Reif submitted a loan modification application on September 30, 2025, but NewRez scheduled a trustee's sale for October 15, 2025. Reif filed an ex parte motion for a temporary restraining order to prevent the foreclosure sale, alleging violations of the Homeowner Bill of Rights and Unfair Competition Law. The court granted the TRO, restraining NewRez from conducting the foreclosure sale for 14 days pending further proceedings.
Transaction Type
Mortgage loan dispute involving first position loan of $1,095,200.00 secured by residential property
Issues
- Whether Plaintiff demonstrated likelihood of success on the merits of claims under California Civil Code § 2923.6 (HBOR) prohibiting 'dual tracking' - the practice of proceeding with foreclosure while reviewing a loan modification application, given that Plaintiff submitted a complete loan modification application at least five business days before the scheduled October 15, 2025 foreclosure sale.
- Whether Plaintiff complied with Federal Rule of Civil Procedure 65(b)(1) and E.D. Cal. Local Rule 231(c) requirements for an ex parte temporary restraining order, including efforts to serve Defendant and proper notification of the right to seek modification or dissolution of the order.
- Whether Plaintiff satisfied the remaining injunctive relief factors: likelihood of irreparable harm from losing primary residence, balance of equities tipping sharply in Plaintiff's favor, and public interest in enforcing foreclosure law compliance.
- Whether the court should grant Plaintiff Dion Reif's motion for a temporary restraining order to prevent Defendant NewRez, LLC from conducting the scheduled trustee's sale foreclosure of the Property at 13244 Country Heights Drive, Penn Valley, California.
Holdings
The court granted Plaintiff's motion for a temporary restraining order preventing Defendant NewRez, LLC from conducting a trustee's sale of the Property at 13244 Country Heights Drive, Penn Valley, California. The court excused Plaintiff's procedural deficiencies under Local Rule 231(c) and found Plaintiff showed likelihood of success on HBOR Section 2923.6 dual tracking claims, likelihood of irreparable harm from losing primary residence, balance of equities tipped in Plaintiff's favor, and the injunction serves public interest. The TRO is effective for 14 days or until preliminary injunction ruling.
Remedies
The court granted Plaintiff's motion for a temporary restraining order restraining Defendant NewRez, LLC from conducting a trustee's sale of the real property located at 13244 Country Heights Drive, Penn Valley, California 95946. The temporary restraining order is effective for fourteen (14) days from the date of entry or until the court rules on a timely filed motion for preliminary injunction, whichever is later. Plaintiff is not required to post a bond pursuant to Federal Rule of Civil Procedure 65(c). The order also provides scheduling for a potential preliminary injunction hearing (Plaintiff to file by October 17, 2025, with hearing on November 7, 2025) and Defendant's right to seek modification or dissolution on two days' notice.
Contract Value
1095200.00
Legal Principles
The court applied the standard for issuing a temporary restraining order, which is substantially identical to the standard for issuing a preliminary injunction. To obtain injunctive relief, the moving party must show: (1) a likelihood of success on the merits; (2) a likelihood of irreparable harm to the moving party in the absence of preliminary relief; (3) that the balance of equities tips in favor of the moving party; and (4) that an injunction is in the public interest. The Ninth Circuit may also consider a 'sliding scale' approach where a stronger showing of one element may offset a weaker showing of another. The court also applied California Civil Code § 2923.6 (HBOR), which prohibits lenders from 'dual tracking' - proceeding with foreclosure while reviewing a loan modification application.
Precedent Name
- Granny Goose Foods v. Teamsters
- Campos v. Dyck O'Neal
- Mcbride v. PHH Mortg. Corp.
- Bowes v. PennyMac Loan Servs.
- Winter v. Nat. Res. Def. Council
- Alvarez v. Wells Fargo Bank
- Berkeley v. Cal. Dep't of Transp.
- Fernandes v. Nationstar Mortg. LLC
- Bermudez v. Caliber Home Loans
- Hill v. World Sav. Bank
- Stuhlbarg Int'l Sales v. John D. Brush & Co.
- Singh v. Bank of Am., N.A.
- All. for the Wild Rockies v. Cottrell
Cited Statute
- California Civil Code Section 2923.7
- California Business and Professions Code Section 17200 et seq.
- California Civil Code Section 2923.6
Judge Name
Judge Dena Coggins
Passage Text
- If a borrower submits a complete application for a first lien loan modification offered by, or through, the borrower's mortgage servicer at least five business days before a scheduled foreclosure sale, a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent shall not record a notice of default or notice of sale, or conduct a trustee's sale, while the complete first lien loan modification application is pending.
- Given Plaintiff's allegations that he submitted the loan modification application at least five business days prior to the foreclosure sale and that it is currently pending, and that none of the three conditions provided for in Section 2923.6(c) have occurred, allowing Defendant to proceed with the October 15, 2025 foreclosure sale would violate the provisions of Section 2923.6(c).
- Because Plaintiff has raised serious questions going to the merits of his Section 2923.6 claim, established that balance of the equities tips sharply in his favor, and made a sufficient showing as to the other two factors, the court will grant Plaintiff's motion for a temporary restraining order.
Damages / Relief Type
Temporary restraining order preventing defendant from conducting trustee's sale of property at 13244 Country Heights Drive, Penn Valley, California for 14 days