Summary:
The Male Debtor executed a promissory note in favor of Option One Mortgage, the predecessor to Wells Fargo, and at the same time both Debtors executed a Deed of Trust. Subsequently, the Male Debtor defaulted on the note and the property was sold at foreclosure. A Substitute Trustee’s Deed was then recorded, conveying the property to Wells Fargo.
Later, the Clerk of Court was informed that the Notice of Sale had not been included in the foreclosure file and Clerk set aside the foreclosure sale. Wells Fargo then transferred the property to Male Debto
Answer a Complaint filed by Wells Fargo in North Carolina Superior Court, Stonebridge asserted several counterclaims. When Stonebridge later filed Chapter 11, the state court action was removed to bankruptcy court. Following the heightened pleading standards of Iqbal/Twombley, Wells Fargo sought dismissal of the counterclaims under Rule 12(b)(6) for failing to state claims for relief that were facially plausible. Stonebridge argued that the more permissive North Carolina pleading standards sho
