16CV291676

Ralph Theodule et al vs Bank of America, NA

I. Background

This breach of contract lawsuit arises from a dispute over a mortgage modification. Plaintiffs Ralph and Deborah Theodule (collectively, “Plaintiffs”) own real property located at 2357 Shelley Avenue in San Jose, California (the “Property”). (First Amended Complaint (“FAC”), ¶ 4.) In April 2006, Plaintiffs refinanced their mortgage on the Property through nonparty Diablo Funding Group, Inc.; they executed a “first-lien Deed of Trust and Promissory Note” in its favor. (FAC, ¶ 10.) Subsequently, defendant Bank of America, N.A. (“Bank of America”) became the successor beneficiary of the deed of trust. (FAC, ¶ 11.)

In 2012, Plaintiffs submitted to Bank of America a loan modification application to avoid foreclosure. (FAC, ¶ 12.) Bank of America approved Plaintiffs’ application and offered them a permanent modification contingent upon successful completion of a trial period. (FAC, ¶ 12.) The offer stated Plaintiffs’ su