Valbuena v. Ocwen Loan Servicing, LLC

The Valbuenas (plaintiffs) fell behind on mortgage payments, and Ocwen (defendant) became their loan servicer shortly before a scheduled foreclosure sale, inviting them to apply for a loan modification while representing no foreclosure would occur if they applied more than seven days before the sale date. The Valbuenas submitted the requested documentation, but Ocwen rejected their application as untimely (with less than seven days remaining) and foreclosed anyway; the Valbuenas sued for violations of California's Homeowner Bill of Rights (HBOR), and the trial court sustained Ocwen's demurrer on the ground that the Valbuenas never tendered the loan balance before suing.