OC INTERIOR SERVICES v NATIONSTAR | CA Appeals Ct - We reverse as the void default judgment was a nullity for all purposes, including as against a purported bona fide purchaser for value

h/T Gary Dubin Law Filed 1/31/17

CERTIFIED FOR PUBLICATION

COURT OF APPEAL, FOURTH APPELLATE DISTRICT DIVISION ONE STATE OF CALIFORNIA

OC INTERIOR SERVICES, LLC as Trustee, etc., Plaintiff and Respondent, v. NATIONSTAR MORTGAGE, LLC et al., Defendants and Appellants. In this case, plaintiff OC Interior Services, Inc. (OCI) purchased real property knowing about a recorded default judgment in the chain of title that vacated the lien interest of the predecessor-in-interest to appellants Deutsche Bank National Trust Company, in Trust for the Harborview Mortgage Loan Pass-Through Certificates, Series 2007-7 (Deutsche Bank) and Nationstar Mortgage, LLC (Nationstar, together appellants). The default judgment was later adjudicated as void. The question presented is whether OCI, a purported bona fide purchaser for value, took title to the property subject to appellants' lien. The trial court found that OCI was a bona fide purchaser for value that took title to the property free of appellants' lien. We reverse as the void default judgment was a nullity for all purposes, including as against a purported bona fide purchaser for value. [...] As we shall explain, we agree with appellants. We first address the concept of a judgment that is void on the face of the record versus a judgment that appears valid on the face of the record and explain why this distinction makes no difference when a judgment is ultimately declared void. We then explain why even a bona fide purchaser cannot claim title clear of the First DOT based on a void judgment. [...]