On October 5th, the Seventh Circuit and Ninth Circuits each addressed issues arising from flawed foreclosures. In Cogswell v. CitiFinancial Mortgage Co., Inc., the Seventh Circuit reversed the entry of summary judgment in favor of defendant, CitiFinancial, which had assigned a mortgage to plaintiffs. Plaintiffs filed a breach of contract suit against CitiFinancial after their efforts to foreclose on the mortgage was dismissed because CitiFinancial never gave plaintiffs the underlying note. The Seventh Circuit held that a material issue of fact exists on whether CitiFinancial agreed to deliver the note. It further held that as a matter of law, the failure to provide plaintiffs with the note caused plaintiffs' loss. In Countrywide Home Loans, Inc. v. La Jolla Group II, the Ninth Circuit reversed the district court's order quieting title in favor of defendants, purchasers of a home at a foreclosure sale. The erroneous notice of full reconveyance converted Countrywide's senior deed of trust into an equitable lien which was not extinguished by the foreclosure sale under a junior deed of trust. Because defendants had notice of possible irregularities in the record, they were not bona fide purchasers and Countrywide retains a valid lien on the home.