Beecroft v. Deutsche Bank National Trust Co.
798 N.W.2d 78
Minn. Ct. App.2011Background
- Beecrofts filed to quiet title and challenge Deutsche Bank's mortgage foreclosure by advertisement.
- Original mortgage to Ameriquest; note dated December 2005, secured by January 2006 mortgage in Kandiyohi County; default in October 2008.
- Ameriquest assigned the mortgage to Deutsche Bank on March 4, 2009 by Citi Residential (attorney-in-fact) citing limited powers of attorney from 2007; assignment recorded March 10, 2009.
- Foreclosure by advertisement commenced March 26, 2009; sheriff's sale occurred September 21, 2009 with redemption period to May 10, 2010.
- District court granted summary judgment in Deutsche Bank’s favor; Beecrofts appealed, arguing improper authority and gaps in chain of title.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does § 580.02 require recording a power of attorney for foreclose by advertisement? | Beecrofts argue recording of Citi Residential authority is required. | Deutsche Bank argues recording of the POA is not required; only mortgage and assignments must be recorded. | No recording requirement for POA; statute satisfied by mortgage and assignment. |
| Whether there is a genuine issue about proper assignment authority to Deutsche Bank via Citi Residential | Beecrofts contend Citi Residential acted beyond its authority under the POA. | Deutsche Bank asserts Citi Residential acted within the POA; validity supported by record. | Remand to determine Citi Residential’s authority basis; record insufficient to resolve. |
Key Cases Cited
- Morrison v. Mendenhall, 18 Minn. 232 (Minn. 1872) (foreclosure by advertisement requires recording of mortgage and assignments; no need to record attorney authority)
- Jackson v. Mortgage Elec. Registration Sys., Inc., 770 N.W.2d 487 (Minn. 2009) (strict compliance with § 580.02; due record to establish title)
- Soufal v. Griffith, 159 Minn. 252 (Minn. 1924) (title-of-record importance in foreclosure contexts)
- Phillips-Klein Cos. v. Tiffany P’ship, 474 N.W.2d 370 (Minn.App.1991) (court reliance on affidavits when movant’s evidence uncontroverted)
- DLH, Inc. v. Russ, 566 N.W.2d 60 (Minn.1997) (summary judgment standard and genuine issues of material fact)