Stuart Kunio Saito and Raynette Kuilani Saito (the Saitos) appeal a September 3, 2019 decision from the Circuit Court of the First Circuit, which favored Wells Fargo Bank, N.A. as Trustee for Option One Mortgage Loan Trust 2007-3. The case originated from a Second Amended Complaint filed by the Bank on July 12, 2018, alleging that the Saitos executed an adjustable rate note and a corresponding mortgage on December 19, 2006, which was later assigned to the Bank. Following the Saitos' default, the Bank conducted a nonjudicial foreclosure and sold the property. The complaint sought to set aside the foreclosure, declaring the auction and subsequent documents null and void while reinstating the modified mortgage as a valid lien.
In their defense, the Saitos claimed wrongful foreclosure due to alleged deficiencies in the foreclosure process but did not file a counterclaim. They opposed the Bank's summary judgment motion, arguing that the Bank failed to prove it held the note and mortgage at the time of the original complaint, citing *Bank of America, N.A. v. Reyes-Toledo*. The court affirmed the judgment in favor of the Bank.
Bank sought to rescind a non-judicial foreclosure sale rather than enforce the Note and Mortgage. During a hearing on June 26, 2019, Bank's counsel confirmed possession of the original Note but emphasized the intent to reverse the foreclosure and restore the parties' prior positions. The Circuit Court indicated it would grant Bank's summary judgment motion, later entering an order on September 3, 2019, which set aside the foreclosure sale, rescinded related documents, and reinstated the original Mortgage. The Saitos appealed, arguing that Bank did not establish standing through admissible evidence, citing the Reyes-Toledo case. However, the court determined that the standards from Reyes-Toledo were not applicable since Bank was not seeking foreclosure but declaratory relief. Citing a prior case, Omizo, the court affirmed that Bank had the standing to seek such relief due to the existing legal disputes with the Saitos. The Saitos did not contest other aspects of the summary judgment. Consequently, the Circuit Court's judgment was affirmed.
