Heritage Pacific Financial is a Texas debt collector that has developed a business model of suing borrowers for fraud on foreclosed second mortgage debts that are uncollectable because of California anti-deficiency law. In this case, I defended the borrower and cross-sued the debt collector for unlawful debt collection practices. Our position is that the debt collector cannot sue for fraud because it was not defrauded, including because it purchased the debt with full knowledge that the first mortgage had been foreclosed on, and because the fraud claim was not assigned and is not assignable. On August 9, 2011, the Contra Costa Superior Court agreed with this analysis and dismissed Heritage Pacific’s claim against Ms. Monroy with prejudice. Here is the Court’s order. Now we will be bringing a motion for summary judgment on our cross-claim against the debt collector for unfair debt collection practices. The debt collector is filing these cases up and down the state, and I am working with other class action attorneys and victims to put an end to these practices and force the debt collector to disgorge its ill gotten gains.