HICKS v. HSBC

Court of Appeals of Arizona·Decided September 11, 2026·No. 1 CA-CV 25-1027·Unpublished·Andrew J. Becke

Opinion

NOTICE: NOT FOR OFFICIAL PUBLICATION.

UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.

IN THE

ARIZONA COURT OF APPEALS

DIVISION ONE

VIVIAN HICKS, Plaintiff/Appellant,

v.

HSBC BANK USA NA, et al., Defendants/Appellees.

No. 1 CA-CV 25-1027

FILED 09-11-2026

Appeal from the Superior Court in Maricopa County No. CV2025-003254

The Honorable Scott A. Blaney, Judge

AFFIRMED

COUNSEL

Vivian Hicks, Phoenix Plaintiff/Appellant

Burch & Cracchiolo, P.A., Phoenix By Andrew Abraham, Jackson Hendrix Counsel for Defendant/Appellee PAJ Enterprises

Decision of the Court

ZBS Law, LLP, Phoenix By Erin K. Sweeney Counsel for Defendant/Appellee Thompson Jones

Klinedinst PC, Phoenix By C. Nicole Price, Grace L. Sluga Counsel for HSBC Bank USA

Evans, Dove, Nelson, Fish & Grier, P.L.C., Mesa By Douglas N. Nelson, Trevor J. Fish Counsel for Defendant/Appellee Carranza Services, LLC

MEMORANDUM DECISION

Presiding Judge Andrew J. Becke delivered the decision of the Court, in which Judge James B. Morse Jr. and Judge Samuel A. Thumma1 joined.

B E C K E, Judge:

¶1 Plaintiff Vivian Hicks (“Hicks”) appeals the dismissal of her complaint claiming mortgage fraud resulting in the foreclosure of her home and that she did not receive notice of a trustee’s sale. For the following reasons, we affirm.

FACTUAL AND PROCEDURAL HISTORY

¶2 In 2003, Hicks purchased a home (the “Property”) and obtained a loan of $126,179 from Allied Home Mortgage Capital Corporation (“Allied”). The deed of trust named Mortgage Electronic Registration Systems, Inc. (“MERS”) as the beneficiary, solely as Allied’s nominee. MERS later assigned all beneficial interest to HSBC Bank USA, National Trust Company, as Trustee for the holders of MASTR

1 Judge Samuel A. Thumma was on the panel assigned to this case until retiring effective August 28, 2026. Arizona Supreme Court Chief Justice Ann A. Scott Timmer appointed Judge Thumma to continue to serve on the Court through December 31, 2026, to resolve those cases in which he previously participated like this case. See Arizona Supreme Court Administrative Order 2026-124.

Decision of the Court

Reperforming Loan Trust 2005-2 (“HSBC”). In July 2024, Newrez LLC d/b/a Shellpoint Mortgage Servicing (“Shellpoint”) became the servicer of the loan. Carrie Thompson Jones (“Thompson Jones”) then became trustee.

¶3 The record indicates that, beginning in 2007, Hicks failed to make timely payments, resulting in the lender issuing trustee’s sale notices on four separate occasions. The first three sales were cancelled when Hicks entered into loan modification agreements. The fourth sale, noticed on October 18, 2024, resulted in a January 23, 2025, trustee’s sale of the Property.

¶4 Carranza Services LLC (“Carranza”) purchased the Property at the trustee’s sale. Thompson Jones then conveyed title to the Property to Carranza through a trustee’s deed, recorded on January 31, 2025.

¶5 On January 27, 2025, after the trustee’s sale but before the recording of the trustee’s deed, Hicks filed this lawsuit alleging that she did not have notice of the trustee’s sale and that the defendants committed various fraudulent acts. Hicks named HSBC, Shellpoint, MERS, and Thompson Jones as defendants. Hicks later added Carranza as a defendant. Hicks’s operative complaint alleged that she did not have notice of the trustee’s sale until after it had already occurred. She also alleged that the defendants drained her escrow account without her knowledge, caused her insurance to be cancelled and then purchased new insurance on the Property at a higher premium, and made changes to her loan without her knowledge.

¶6 Hicks also moved for an emergency hearing and a temporary restraining order, alleging elder abuse, wrongful foreclosure and sale of the Property, mortgage fraud, and insurance fraud.

¶7 Hicks then moved to amend her complaint again. She requested that Carranza’s owners, as well as a subsequent purchaser of the Property and the subsequent purchaser’s lender, Paj Fund I, LLC, d/b/a Paj Fund II, LLC, d/b/a Paj Enterprises (“Paj”) be added as defendants. Hicks alleged that the subsequent purchaser lied about being married and that Paj did not possess a lender’s license. Hicks did not attach a proposed amended complaint to her motion. The court denied her motion for failing to comply with Arizona Rule of Civil Procedure 15(a)(4), which requires a proposed amended complaint be attached to a motion to amend a complaint.

¶8 Carranza moved to dismiss the claims against it under Rule 12(b)(6). The court granted Carranza’s motion, concluding the

Decision of the Court

complaint failed to state a claim against Carranza upon which relief could be granted.

¶9 Thompson Jones and HSBC separately moved to dismiss under Rule 12(b)(6). Thompson Jones attached various documents showing that: Hicks had been mailed notice of the trustee’s sale on November 14, 2024; notice was posted on the Property on November 25, 2024; and notice was published in a newspaper on November 20, November 27, December 4, and December 11, 2024—all in compliance with A.R.S. § 33-808(A). The court denied both motions, concluding Hicks’s operative complaint alleged sufficient facts to potentially establish a right to relief.

¶10 Hicks then moved for summary judgment, arguing that she was a victim of a “multi-million-dollar mortgage scheme to defraud homeowners out of their homes.”

¶11 Meanwhile, HSBC opposed Hicks’s motion for emergency hearing and temporary restraining order. HSBC’s filing attached documents relating to the loan and trustee’s sale and a declaration of the senior litigation case manager for Shellpoint detailing the history of the loan. HSBC argued that Hicks had waived her arguments because she had not obtained an injunction before the trustee’s sale. A.R.S. § 33-811(C) (the trustor waives “all defenses and objections to the sale” that were not raised in an action that results in an injunction prior to the sale). The declaration stated that Shellpoint mailed Hicks information regarding her eligibility for loss mitigation in August 2024. It also sent an agent to the Property in September 2024 to attempt to speak with Hicks, but when Hicks did not answer, the agent left a sealed letter on the front door of the Property, which also went unanswered.

¶12 The court determined that because Hicks moved for a temporary restraining order, it could consider matters outside the pleadings, including the documents and declaration HSBC attached to its opposition. The court determined that Hicks had waived all of her defenses and objections to the sale of the Property by not obtaining an injunction before the trustee’s sale, citing A.R.S. § 33-811(C).

¶13 The court, on its own motion, then dismissed the complaint with prejudice as to all defendants. In doing so, the court noted that motions to dismiss under Rule 12(b)(6) must be decided only on the facts in the complaint, and that here it was considering matters outside the complaint. This necessarily changed the standard to that of summary judgment. See Ariz. R. Civ. P. 12(d) (“If, on a motion under Rule 12(b)(6) or (c), matters

Decision of the Court

outside the pleadings are presented to, and not excluded by, the court, the motion must be treated as one for summary judgment under Rule 56.”).

¶14 Hicks then filed an objection to the summary judgment ruling, which the court treated as a motion for reconsideration. The court denied the motion because Hicks “merely advance[d] the same arguments that the Court previously found unpersuasive.”

¶15 Hicks timely appealed. We have jurisdiction pursuant to A.R.S. §§ 12-120.21 and -2101(A)(1).

DISCUSSION

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