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REUSSER v. WACHOVIA BANK, N.A.

No. 06-35850.

525 F.3d 855 (2008)

Kenneth L. REUSSER; Gertrude Reusser, Plaintiffs-Appellants, v. WACHOVIA BANK, N.A.; Washington Mutual Bank, FA, Defendants-Appellees, and Georgianna K. Nakamoto; Steven C. Nakamoto, Defendants.

United States Court of Appeals, Ninth Circuit.

Filed May 8, 2008.

Attorney(s) appearing for the Case

Charles R. Markley, Greene & Markley, P.C., Portland, OR, argued the cause for the plaintiffs-appellants and filed briefs.

Thomas R. Johnson, Perkins Coie LLP, Portland, OR, argued the cause for the defendants-appellees and filed a brief; Amber A. Hollister, Perkins Coie LLP, Portland, OR, was on the brief.

Before: DIARMUID F. O'SCANNLAIN, SUSAN P. GRABER, and CONSUELO M. CALLAHAN, Circuit Judges.

O'SCANNLAIN, Circuit Judge:

We must decide whether alleged fraud in a state court home foreclosure proceeding during the homeowners' bankruptcy can be re-visited in federal court.

I

A

In December 2001, Kenneth and Gertrude Reusser received an $860,000 loan from Long Beach Mortgage Company, placing as collateral a home that had been in Kenneth's family for more than 100 years. Five months after receiving the loan, the Reussers stopped making...

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