As to the unopposed demurrer of Aurora Loan Services (Aurora) the court rules:
1st c/a (wrongful foreclosure): Sustained with leave to amend. Aurora complains that the loan modification was rightfully terminated because it has evidence that plaintiffs may not be residing at the property. The complaint alleges that this is indeed why Aurora terminated the loan modification, but plaintiffs allege they were residing at the property. (¶ 19). However, the complaint fails to allege that Aurora knew or should have known plaintiffs resided at the property.
3rd c/a (breach of implied covenant of good faith and fair dealing): Sustained without leave to amend. This cause of action only applies in fiduciary situations or "special relationships." A lender/borrower relationship is not one of these. Mitsui Manufacturers Bank v Superior Court (1989) 212 Cal.App.3d 726.
4th c/a (breach of fiduciary duty): Sustained without leave to amend. Lenders and borrowers are not in a fiduciary relationship.
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