This past June, in Barnes v. U.S. National Bank, No. 2180699, the Alabama Court of Civil Appeals held that a mortgagee’s notice of acceleration failed to strictly comply with the notice provisions contained in Paragraph 22 (“Paragraph 22”) of the Fannie Mae/Freddie Mac Uniform Mortgage. As a result, the Court held that the foreclosure sale was void.
Continue Reading Alabama Court of Civil Appeals Doubles Down on “Strict Compliance” with Notice Provisions of Standard Mortgage’s Paragraph 22
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A personal guarantor who does not have an interest in the property secured by the debt lacks standing to assert wrongful foreclosure.
By Gregory C. Cook & Ginny Willcox Leavens on
In In Re: Bay Circle Properties, LLC., No. 1812536, 2020 WL 1696303 (Ala. April 8, 2020), the Eleventh Circuit dismissed an appeal by a guarantor alleging a wrongful foreclosure, because the guarantor did not own the foreclosed property and therefore lacked Article III standing. Here are the facts: Debtor owed for two loans,…
Alabama Supreme Court: Mortgage requirements must be strictly followed
By Steven C. Corhern on
Posted in Mortgage Rules
In a recent surprising loss for mortgage holders, the Alabama Supreme Court held that a failure to strictly comply with the exact terms of the mortgage when conducting a foreclosure sale can result in the sale failing. Thus, lenders should be especially careful to conduct foreclosure proceedings exactly as required by their mortgages or risk expending substantial resources toward only to have this work later undone by a court.
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Continue Reading Alabama Supreme Court: Mortgage requirements must be strictly followed