A unanimous state Supreme Court ruling affords foreclosed upon borrowers standing to bring suit by showing that there has been an invasion of his/her legally protected interests. In 2006, homeowner Tsvetana Yvanova borrowed money and executed a deed of trust on a residential property. The lender and beneficiary of the trust deed, New Century, filed for bankruptcy in 2007 and was liquidated in 2008. Yvanova claimed that the trust deed was illegally assigned to a bank in 2011, after New Century dissolved, and that the deed was improperly assigned to an investment trust. Yvanova’s home was sold at an auction in 2012. Yvanova’s suit is but one in the many similar suits challenging the validity of transactions by lenders following the collapse of the housing market.
The Supreme Court ruling in Yvanova v. New Century Mortgage Corp, et al. focuses narrowly on the issue of standing. This case establishes that a homeowner has standing to bring suit, however, in order to prevail, the homeowner/borrower would still need to show that any assignment was void, or in other words, that there was some injury to the homeowner/borrower. In essence, wrongful foreclosure plaintiffs can now ensure that their grievances are heard.