Court Certifies California Class Action Against Temple-Inland Mortgage Corp.

July 9, 2007, 6:00PM.

Los Angeles, CASuperior Court Judge Stephen J. Sundvold (Orange County) on July 6, certified a class action against Temple-Inland Mortgage Corp. of Austin, Texas, which allows claims to go forward against Temple-Inland for failing to timely reconvey home loans.

The class representative in Soriano v. Temple-Inland Mortgage Corp. is a former Temple-Inland customer whose title was not properly reconveyed by Temple-Inland after the loan was refinanced. California Civil Code section 2941 requires lenders to timely reconvey title to homeowners' properties when loans are refinanced or otherwise paid in full. The class members have similar claims against Temple-Inland.

California Civil Code section 2941 mandates a $300 to $500 penalty for each time Temple-Inland violates the statute.

Los Angeles attorney, Robert Brava-Partain (of Baum Hedlund) successfully argued the class certification motion and said that tens of thousands of home owners across California have been affected by Temple-Inland's illegal practices. "Finally, after years of delay tactics by Temple-Inland, the citizens of California will have this case decided on the merits in a trial," said Brava-Partain.

Presently, trial is scheduled for August 20, 2007. Class members should receive notice in the mail regarding this case which will contain instructions on how to protect their rights.

A reconveyance is the transferring of a title back to its previous owner. If a reconveyance is not done properly and on time, it can leave a "cloud" on the title, thus holding it up in Escrow. This is usually discovered when the sale of the home is days from being final. In most cases, the buyer has loan approval, and the keys are about to be given to the new buyer when the seller is told there is a "cloud" on the title which must be cleared before the sale can go through. Escrow cannot close until the lien is cleared. But the seller paid the debt years ago.

To clear a paid loan that is secured by real estate, and to ensure it is cleared as "paid off" in public records, the lender must turn over the original note and trust deed to the borrower or the trustee for "reconveyance" and filing with the county recorder. The reconveyance lets everyone know the borrower satisfied the debt.

Baum Hedlund has represented thousands of consumers throughout the nation in consumer protection class actions such as litigation for unfair business practices of insurance companies, mortgage lenders, banks, title companies, and pharmaceutical manufacturers. The firm is also a leading plaintiff firm in antidepressant injury litigation and commercial transportation accident litigation.