Equity is a parallel legal system grounded in conscience, fairness, and moral justice, developed to address the limitations and rigidity of common law. It offers remedies where legal (monetary) relief is insufficient—such as injunctions, constructive trusts, and specific performance. Equity acts upon the person rather than the property (in personam), and is guided by enduring maxims, including: “He who comes into equity must come with clean hands” and “Equity regards as done that which ought to be done.” It ensures that rights are enforced not merely by law, but by what is just and honorable.
Here’s how that can be done if proper and factually supported: Sourced on Realworldfare
🔑 1. Establish Standing with a Security Interest (UCC Article 9)
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File a UCC-1 Financing Statement naming yourself (or your trust/estate) as Secured Party, and the party claiming ownership (bank, servicer, trustee, etc.) as the Debtor.
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Reference the property address, deed of trust, and mortgage note as collateral.
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Cite relevant authority:
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UCC § 9-105 (control of deposit accounts)
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UCC § 9-607 (right to collect, enforce, or dispose of collateral)
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This puts the world on notice that you are asserting a legal and equitable lien and intend to enforce your claim over any proceeds or title interest.
🧾 2. Perfect the Equitable Claim via Affidavit
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Draft an Affidavit of Security Interest & Equitable Claim, signed under penalty of perjury.
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State:
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You provided the original instrument or value (note, down payment, etc.)
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The foreclosure was fraudulent, procedurally defective, or violated due process.
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You are the Holder in Due Course (UCC § 3-302) with rights to the note or contract.
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That all funds or proceeds from the foreclosure must be accounted for and returned.
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Attach:
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UCC-1 Filing
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Deed/Note copy
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Proof of payments
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Affidavit of prior tender or conditional acceptance (if applicable)
⚖️ 3. Invoke Equity and Trust Principles
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In equity, he who has the beneficial interest is the true owner.
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If the trustee or servicer never proved true party in interest, or failed to rebut your claim, then their action may be void.
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UCC § 3-603 provides that tender discharges the obligation if not returned or dishonored.
If you can show:
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You tendered lawful payment or setoff
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The servicer accepted your negotiable instrument or offer, but foreclosed anyway
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Or that the sale occurred under fraud, coercion, or without standing
Then your equity position is restorable by law.
💰 4. Claim Proceeds, Surplus, or Title
Once you’ve perfected the claim:
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Demand an accounting of all proceeds.
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File a Notice of Equitable Claim or Lis Pendens in the county.
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If the foreclosure deed is voidable, pursue:
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Quiet Title Action
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Claim for Constructive Trust
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Restitution of Possession
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If the property has been sold:
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You can still pursue the proceeds from the sale, especially if you had a superior claim or if fraud was involved.
🏁 Summary
✅ File UCC-1 to perfect your lien
✅ Assert your equity through affidavit and notice
✅ Prove tender or unrebutted performance
✅ Challenge any unlawful foreclosure through equity and commercial law
✅ Seek return of the home or proceeds through court or administrative remedy
