Appeals Court of Massachusetts Renders Decision for MERS in Mortgage Assignment Case

In another recent real estate case from the Appeals Court of Massachusetts dealing with mortgage foreclosure, Hoyt v. BAC Home Loan Servicing, L.P., the individuals who mortgaged a property attempted to challenge a foreclosure decision reached in the lower court regarding the legality of assignment and foreclosure.

The homeowners in the case were challenging the assignment of the underlying note that was attached to their mortgage, in addition to the validity of the subsequent foreclosure.

In this very commonly litigated topic right now, the Appeals Court reviewed the record and evidence in the case, and it found that the legal interest in the mortgage may properly be separated from the interest in the debt that it actually secures. It found that the assignment to Mortgage Electronic Registration Systems (MERS) was both valid and legally conveyed, and that it had a proper interest in  because it held the record legal title interest in the mortgage when it executed the subsequent assignment.

Additionally, the Appeals Court ruled that the entity that actually conducted the foreclosure had the right to foreclose as an assignee of the mortgage, since at the time the foreclosure proceedings were initiated, there was no requirement that the foreclosing entity must hold both the mortgage and the underlying note.

Lastly, the court found that the borrowers lacked standing to challenge the legality of the assignment, as it has done in other recent similar cases.

The main arguments in this case dealt with challenging the assignment of the mortgage, since if the assignment was not proper, arguably the resultant foreclosure may not have been legally proper, and thus the title would still remain with the homeowners. Additionally, foreclosure proceedings must follow very stringent requirements, which are in place in order to ensure that homeowners’ rights are being protected.

The take away from this case, as in many other foreclosure cases, is that homeowners should do whatever they can to challenge the foreclosure before it happens. In many cases, contacting an attorney as soon as possible can give you the best possible shot at working out a mutually agreeable compromise.

The lawyers at Pulgini & Norton offer detail-oriented and client-centered representation in Boston property transactions. Our real estate lawyers draft agreements and negotiate provisions with your needs and goals in mind. We will work to overcome or prevent any foreseeable hurdles and protect your interests, while working towards a timely closing or resolution of your matter. If you are facing foreclosure, there are specific details you will need to know in order to determine how to best proceed. We represent clients in Brookline, Lowell, and Malden, among other Massachusetts communities. Contact us today by calling 781-843-2200 or contact us online for a consultation.

More Blog Posts:

Massachusetts Attorney General Obtains Nearly $2 Million Judgment in Alleged Predatory Foreclosure Business Lawsuit, Massachusetts Real Estate Lawyer Blog, published April 15, 2015

Massachusetts Appeals Court Upholds Default Judgment in Real Estate Case, Massachusetts Real Estate Lawyer Blog, published April 8, 2015

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