Bank of New York Mellon Corp. v. Wain
85 Mass. App. Ct. 498
| Mass. App. Ct. | 2014Background
- Homeowners defaulted on a 2006 note and mortgage secured by Nantucket property; the bank acquired the loan by assignment and foreclosed, purchasing at foreclosure sale.
- Mortgage initially held by MERS as nominee; bank later recorded assignment from MERS to bank as Trustee for TBW Mortgage-Backed Trust 2007-1 before foreclosure.
- Notice to cure under G. L. c. 244, § 35A was sent April 5, 2010, stating default and cure prospects; a notice identified TBW 2007-1 as mortgagee.
- Foreclosure sale occurred July 19, 2011; bank conducted sale and later recorded foreclosure deed and affidavit of sale on December 21, 2011.
- Land Court judge granted summary judgment for the bank; homeowners counterclaimed seeking to challenge foreclosure on multiple grounds, including § 35A deficiencies and assignment validity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 35A defects render foreclosure void | Homeowners contend notice did not fully comply with § 35A. | Bank argues noncompliance alone does not automatically void foreclosure; equities may allow relief. | Noncompliance alone not enough; Schumacher standard applies; no entitlement to setting aside sale in this postforeclosure action |
| Whether the MERS-to-bank assignment is void or voidable and merits challenge to title | Homeowners claim assignment may be invalid due to authority or form defects. | Bank asserts valid assignment under G. L. c. 183, § 54B; record title supports validity. | Assignment valid; homeowners have no standing to challenge its validity; title passes to the bank |
| Whether a try title action is appropriate to challenge foreclosure | Homeowners seek a try title ruling to establish superior rights and force a merits proceeding. | Bank argues merits can be addressed in a single proceeding; no need for separate try title action. | Court proceeds to merits; in uncontested facts, bank holds superior title; no impediment to resolving in one proceeding |
Key Cases Cited
- U.S. Bank Natl. Ass’n v. Schumacher, 467 Mass. 421 (Mass. 2014) (noncompliance with § 35A may allow equitable relief in certain postforeclosure contexts)
- Bank of Am., N.A. v. Rosa, 466 Mass. 613 (Mass. 2013) (basic framework for relief where foreclosure process has defects)
- Kondaur Capital Corp. v. Kondaur Capital, 85 Mass. App. Ct. 202 (Mass. App. Ct. 2014) (assignment validity depends on whether record title holder had proper authority; voidable defects not dispositive)
- Bevilacqua v. Rodriguez, 460 Mass. 762 (Mass. 2011) (explanation of try title action and its role in review of property claims)
- Lemelson v. U.S. Bank Natl. Ass’n, 721 F.3d 18 (1st Cir. 2013) (uncertainty over who holds mortgage title does not establish adverse title to mortgagor)