N.C. Court of Appeals: Wells Fargo v. Huntley- Purchaser in Foreclosure can seek reformation of Deed of Trust

Summary: Wells Fargo sought a reformation of a Deed of Trust, which it discover, after the borrowers defaulted and Wells Fargo foreclosed (putatively purchasing the property itself), did not describe the actual real property upon which the house was built. The trial court held that as Wells Fargo, having purchased the property at foreclosure, was no longer a lender and lacked standing as a purchaser to seek reformation. The Court of Appeals disagreed, following Citifinancial Mortg. Co. v. Gray, 187 N.C. App. 82, 85, 652 S.E.2d 321, 322 (2007), and holding that the purchaser at foreclosure can pursue reformation. Commentary: Free advice to the borrowers- Quickly, file bankruptcy and Wells Fargo will be wiped away. Its own pleadings likely judicially estop it from asserting a valid lien or even that one needs to be avoided. For a copy of the opinion, please see: Wells Fargo v. Huntley- Purchaser in Foreclosure can seek reformation of Deed of Trust