On January 3, the U.S. District Court for the Northern District of California dismissed with prejudice a putative class action alleging a bank breached its Home Equity Conversion Mortgage Deed of Trust and HUD regulations by failing to provide a surviving heir notice and opportunity to purchase the property at 95 percent of its appraised value. Chandler v. Wells Fargo Bank, N.A., No. 11-3831, 2014 WL 31315 (N.D. Cal. Jan. 3, 2014). The court held that the plain language of the deed does not require such notice, in part because the relevant section of the deed that requires the lender to provide notice when the loan becomes due and payable and an option to purchase the property for 95 percent of its appraised value prior to foreclosure (i) specifically does not include as a triggering event the death of the borrower, and (ii) grants rights to the borrower, not the borrower’s heirs. The court also rejected the heir’s claims that HUD regulations required the same notice and opportunity to purchase. The court held that the HUD regulations were not incorporated into the deed, and, even if they were and could be read to allow an heir to take advantage of the 95 percent rule, the applicable HUD interpretation of those regulations at the time required full payment of the debt.