Not So Fast: Foreclosure Halted in Yorba Linda CA.(Washington Mutual Home Loan case)

Washington Mutual Home Loans and co-defendants, California Reconveyance Co. and Greg Metcalf, were stopped by Judge James Gray from taking further steps to foreclose on the sale of a home in Yorba Linda, Calif., according to a press release issued by the plaintiff's attorneys.

Judge Gray ordered a continuation of a temporary restraining order issued on Sept. 30, 2002 and ordered parties to the suit to return to court on Oct. 22 for a preliminary injunction hearing in the case, Carla C. Alonso and Francisco M. Alonso v. Washington Mutual Home Loans, et al.

In the interim, the judge asked that the parties meet to work out a fair and reasonable solution. A spokesperson for Washington Mutual Home Loans said the bank cannot comment on the particulars of the case because of privacy concerns, but that WaMu is "actively working to resolve the matter."

The plaintiffs allege that the foreclosure action stems from a mistake made by Washington Mutual.

Per the judge's order, the Alonso's will immediately pay Washington Mutual their mortgage payments in the amount of $3,994.89 each for August and September, the plaintiff's attorney Browne Greene said.

The Alonso's filed a complaint on Sept. 30 asking the court to set aside the foreclosure sale and cancel the trustee's deed upon sale filed against them by Washington Mutual Home Loans. In 1993, they purchased their Yorba Linda home for $377,500 by making a ...