In re Hwang

189 B.R. 786 (1995)

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In re Hwang

United States Bankruptcy Court for the Central District of California
189 B.R. 786 (1995)

Rich Walter headshot
  • Written by Rich Walter, JD

Facts

Eun Hoi Hwang (plaintiff) purchased property with a loan from James and Edna Stearns (defendants). The loan was secured by a deed of trust requiring Hwang to stay current with her loan repayments but made no mention of collateral obligations such as making interest or tax payments. Hwang regularly paid off her loan, but when the Stearnses learned that Hwang was behind in paying property taxes, they notified Hwang that the trustee would foreclose on her property. The notice recited the amount of Hwang’s default but failed to comply with a statutory requirement that default notices must specify the nature of the debtor’s default. Hwang forestalled the foreclosure by declaring bankruptcy and then sued the Stearnses in bankruptcy court for wrongful foreclosure.

Rule of Law

Issue

Holding and Reasoning (Bufford, J.)

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