A loan servicer may prosecute a judicial foreclosure action in its own name as long as the right to foreclose has been assigned to the loan servicer. Here the lender assigned that right pursuant to a Pooling and Servicing Agreement.
Failure to name a junior lienholder does not preclude a judgment against the named parties, although the judgment does not affect the junior lien. [Ed. Note: The original lender was the same on both the senior and junior deeds of trust, but the opinion does not provide an explanation for not naming the junior lienholder as a defendant.]
Filing a cross-complaint for judicial foreclosure in an action by the borrower for alleged violations concerning earlier attempts to non-judicially foreclose is valid and does not undermine the extensive procedures California has put in place for non-judicial foreclosure. Judicial foreclosures are conducted under the supervision of a court and do not require the same procedural protections as non-judicial foreclosures.